Crypto

Feds seek 18 months for Wall Street rapper in Bitfinex-hack related $4.5b case

Heather Morgan, the Wall Road rapper generally known as “Razzlekhan,” may face 18 months in jail for serving to her husband launder thousands and thousands from the 2016 Bitfinex hack.

U.S. prosecutors search an 18-month jail sentence for Heather Morgan, the Wall Street rapper generally known as “Razzlekhan,” for her position in laundering Bitcoin (BTC) stolen within the 2016 Bitfinex hack.

Morgan, who pleaded responsible final 12 months to money-laundering conspiracy, supplied “substantial help” to the federal government, in accordance with a filing on Wednesday, Oct. 9, in Washington federal court docket.

Morgan’s husband, Ilya Lichtenstein, orchestrated the theft of round 120,000 Bitcoin (round $4.5 billion on the time) from the crypto trade, and prosecutors declare Morgan helped him launder the stolen funds. Although not concerned within the hack itself, Morgan took half in concealing the proceeds, together with shopping for non-fungible tokens, gold, and reward playing cards.

“She was in some methods thrust into the center of a severe prison scheme with out her preliminary consent, and undoubtedly felt compelled to help it out of a way of loyalty to her husband and need to protect their life collectively.”

U.S. prosecutors

Prosecutors additionally described the couple’s laundering strategies as “subtle,” saying the 2 used “advanced transactions, non-compliant digital forex exchanges, darknet markets, and mixers and tumblers, together with Bitcoin Fog, Helix, and ChipMixer” to cover the path.

Regardless of the intense fees, Morgan may obtain a lowered sentence as a consequence of her cooperation, although she can be going through as much as 5 years for conspiring to defraud the U.S.

Morgan’s notoriety stems from her social media persona and rap performances beneath the moniker “Razzlekhan.” Lichtenstein stays in jail, whereas Morgan was granted home arrest on $3 million bail and permission to work as a web3 advisor.

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