Heather Morgan and Lichtenstein, the Bonnie and Clyde of crypto, Admit to Laundering $4.5 Million in Bitfinex Hack

The couple, Heather Morgan and Lichtenstein, who were detained in 2017 for the huge Bitfinex hack of 2016, have admitted to laundering $4.5 billion.

Heather Morgan and Lichtenstein, the Bonnie and Clyde of crypto, Admit to Laundering $4.5 Million in Bitfinex Hack

Morgan, also known as “Razzlekhan,” and former tech entrepreneur Lichtenstein entered guilty pleas on Thursday in a federal court in Washington. Lichtenstein admitted to both the theft of the funds and the money laundering. The couple used exchange wallets, chain-hopping, and privacy coins to wash an estimated 120,000 Bitcoin that was stolen from Bitfinex in 2016 before turning them into cash.

Lichtenstein has now acknowledged that he was the one who hacked the Bitfinex exchange in 2016, despite the fact that the couple was merely accused of laundering this cryptocurrency rather than stealing it. The 35-year-old then enlisted his wife in a complex plot that comprised hiding gold coins and incinerating paperwork in a Kazakhstani trash can.

Disposable Phones Found Under Couple’s Bed

Detectives discovered folders on Liechtenstein’s computer that included false identities the couple had created to open accounts on exchanges. Additionally, a plastic bag marked “burner phones” was found under the couple’s bed by the authorities.

The Department of Justice declared the crypto seizure to be their largest ever at the time the couple was taken into custody. The stolen cryptocurrency had a value of about $4.5 billion at the height of Bitcoin.

Razzlekhan Could Face Up to 10 Years in Prison

Prosecutors said that Morgan was involved in several contradictory items in court documents. For instance, she released multiple rap videos under the alias “Razzlekhan” and taught people how to manipulate people to get what they want. She said that she was an economist and writer.

At the end of last month, the pair initially agreed to a plea agreement. They are currently awaiting a sentencing hearing. While Lichtenstein faces a maximum sentence of 20 years in jail, Morgan might spend 10 years behind bars.

Latest Situation of Stolen Funds

Blockchain data was eagerly used by investors to trace the funds prior to the arrest, providing the victims with a vexing level of transparency into how their money was being used. A minor amount of the Bitcoin Cash that was stolen in the 2016 attack, totaling roughly $314 thousand, was recovered by Bitfinex a few weeks before the plea agreement was made public in July. However, the majority of the money has still not been given back to users.