New York couple accused of laundering hacked Bitfinex crypto reaches plea deal

Legal • July 21, 2023, 11:57AM EDT

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Quick Take

A New York couple accused of laundering billions of dollars related to the hacking of Bitfinex in 2016 has entered into a plea agreement with federal prosecutors.

A New York couple accused of laundering $4.5 billion of crypto related to the 2016 hacking of the Bitfinex exchange have entered into a plea agreement with federal prosecutors, according to court documents.

Ilya Lichtenstein and Heather Morgan are set to attend a plea hearing early next month. Federal prosecutors allege the couple conspired with "others known and unknown to the grand jury," according to the court documents.

Morgan, known by her rapper name “Razzlekhan,” was arrested with Lichtenstein last year and charged with conspiracy to commit money laundering and conspiracy to defraud the U.S. A district court judge had previously signed a protective order in the case, indicating it would involve “classified national security information” that can only be accessed by people with security clearance.

Earlier this month, Bitfinex said it recovered $312,000 in cash and nearly $2,000 worth of Bitcoin Cash from the 2016 hack.

About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.