Rapper ‘Razzlekhan’ Seeks No Additional Jail Time Ahead of Sentencing in Bitfinex Bitcoin Laundering Case

Rapper ‘Razzlekhan’ Seeks No Additional Jail Time Ahead of Sentencing in Bitfinex Bitcoin Laundering Case

Heather Morgan, also known as the rapper “Razzlekhan,” is requesting to avoid further prison time ahead of her upcoming sentencing for her role in laundering Bitcoin stolen from the crypto exchange Bitfinex by her husband, Ilya Lichtenstein.

In a court filing on October 31, Morgan’s attorneys asked a federal court in Washington, D.C., to impose a sentence of time served, arguing that she “has proven herself worthy of a second chance.” The filing highlighted the “difficult conditions” Morgan faced during her brief pretrial detention, including recovering from surgery and contracting COVID-19. Since her release in February 2022, they noted, she has fully complied with strict pretrial conditions.

Morgan, who pleaded guilty in August 2023 to charges of money laundering and fraud, faces a potential maximum sentence of ten years in prison. Her charges stem from aiding in the laundering of 120,000 Bitcoin, now valued at around $8.2 billion, stolen from Bitfinex by Lichtenstein. Last month, U.S. prosecutors recommended a relatively light 18-month sentence for Morgan, citing her “substantial assistance” to their investigation and her lower level of involvement compared to her husband. They described her as having only used “a small fraction” of the stolen funds and noted that she had been “thrust into the middle of a serious criminal scheme” primarily due to her loyalty to Lichtenstein.

Morgan’s defense team emphasized that she was not involved in planning the hack, only learning of her husband’s crime years after he had carried it out. Still, they said she “acknowledges the seriousness of her offense” and is “deeply remorseful.” In their arguments, her lawyers pointed to her efforts to distance herself from her “Razzlekhan” persona, portraying it as a “caricature” distinct from her true character. They also highlighted her employment since her release and her apparent maturity in recent years.

At an August 2023 plea hearing, Lichtenstein confessed to stealing the 120,000 Bitcoin from Bitfinex and later involving Morgan to help cover his tracks by moving around 25,000 Bitcoin through crypto mixers and privacy-focused services. Prosecutors have suggested a five-year prison sentence for Lichtenstein, reduced from the potential 20-year maximum due to his “substantial assistance” to law enforcement, which they claim has aided multiple investigations. However, they contend that he deserves a longer sentence than Morgan, given that he was the scheme’s mastermind and previously tested his methods by stealing $200,000 from another exchange.

Morgan’s sentencing is scheduled for November 15, one day after her husband’s sentencing hearing on November 14.