- Ilya Lichtenstein and his partner Heather Morgan, also known as ‘Razzlekhan’, have confessed to the 2016 multi-billion dollar Bitcoin heist from Bitfinex.
- Morgan, who gained internet fame with her cringe-rap alter ego ‘Razzlekhan’, has pleaded guilty to money laundering and conspiracy to defraud the US, admitting to her growing awareness of her partner’s unlawfully acquired wealth.
Notorious crypto couple, Ilya Lichtenstein and Heather ‘Razzlekhan’ Morgan, have stepped into the legal spotlight, admitting to the 2016 theft of over 119,000 Bitcoin from Bitfinex, one of the prominent cryptocurrency exchanges.
The Plot of the Bitfinex Heist
Bitfinex, a subsidiary of the same organization that owns the leading stablecoin, Tether (USDT), fell victim to an elaborate heist in 2016. The duo executed over 2,000 unauthorized transactions, siphoning the stolen Bitcoin into a digital wallet controlled by Lichtenstein. At the time of theft, the stolen Bitcoin amounted to $71 million, a figure that now soars close to $3.5 billion.
Over the following half-decade, Lichtenstein executed a convoluted money laundering scheme, moving approximately 25,000 of the stolen Bitcoin out of his wallet. Eventually, some of the illicit funds found their way into financial accounts controlled by both him and Morgan.
While initially suspected of merely laundering the stolen funds, Lichtenstein, in a recent court hearing, admitted to being the mastermind behind the Bitfinex hack. His modus operandi involved sophisticated hacking tools and techniques to penetrate Bitfinex’s digital defenses.
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Razzlekhan – From Internet Fame to Legal Infamy
Heather Morgan rose to internet fame under her cringe-rap moniker ‘Razzlekhan’. Recognizable by her distinctive steampunk sunglasses, ‘OFCKS’ hat, and a gold jacket, Morgan became an online sensation, frequently posting about crypto, coronavirus, and fashion on platforms like YouTube and Instagram. Her multifaceted bio further mentions her roles as a software CEO, writer, economist, and more.
However, the very public image that garnered her online popularity also caught the attention of law enforcement. The self-proclaimed ‘Crocodile of Wall Street’ confessed to money laundering and conspiracy to defraud the US, acknowledging her increasing realization of her partner’s ill-gotten wealth. Morgan testified to her role in laundering the funds under Lichtenstein’s guidance.
As part of a cooperation agreement with the authorities, both Lichtenstein and Morgan entered their guilty pleas. Awaiting them now is their pending sentencing, marking the end of a notorious chapter in the annals of crypto crime.
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