Heather Morgan, the Wall Street rapper known as “Razzlekhan,” could face 18 months in prison for helping her husband launder millions from the 2016 Bitfinex hack.
U.S. prosecutors seek an 18-month prison sentence for Heather Morgan, the Wall Street rapper known as “Razzlekhan,” for her role in laundering Bitcoin (BTC) stolen in the 2016 Bitfinex hack.
Morgan, who pleaded guilty last year to money-laundering conspiracy, provided “substantial assistance” to the government, according to a filing on Wednesday, Oct. 9, in Washington federal court.
Morgan’s husband, Ilya Lichtenstein, orchestrated the theft of around 120,000 Bitcoin (around $4.5 billion at the time) from the crypto exchange, and prosecutors claim Morgan helped him launder the stolen funds. Though not involved in the hack itself, Morgan took part in concealing the proceeds, including buying non-fungible tokens, gold, and gift cards.
“She was in some ways thrust into the middle of a serious criminal scheme without her initial consent, and undoubtedly felt compelled to support it out of a sense of loyalty to her husband and desire to preserve their life together.”
U.S. prosecutors
Prosecutors also described the couple’s laundering methods as “sophisticated,” saying the two used “complex transactions, non-compliant virtual currency exchanges, darknet markets, and mixers and tumblers, including Bitcoin Fog, Helix, and ChipMixer” to hide the trail.
Despite the serious charges, Morgan could receive a reduced sentence due to her cooperation, though she is also facing up to five years for conspiring to defraud the U.S.
Morgan’s notoriety stems from her social media persona and rap performances under the moniker “Razzlekhan.” Lichtenstein remains in jail, while Morgan was granted house arrest on $3 million bail and permission to work as a web3 advisor.
