Heather Morgan, the Wall Street rapper known as “Razzlekhan,” could face 18 months in prison for assisting her husband in laundering millions from the 2016 Bitfinex hack.

U.S. Prosecutors Seek Prison Sentence for Morgan

U.S. prosecutors are seeking an 18-month prison sentence for Heather Morgan, also known as “Razzlekhan,” for her involvement in laundering Bitcoin stolen in the 2016 Bitfinex hack. Morgan, who pleaded guilty last year to a money-laundering conspiracy, provided substantial assistance to the government, according to a filing on Wednesday, Oct. 9, in Washington federal court.

Details of the Bitfinex Hack

Morgan’s husband, Ilya Lichtenstein, orchestrated the theft of approximately 120,000 Bitcoin (worth around $4.5 billion at the time) from the crypto exchange. Prosecutors claim Morgan helped him launder the stolen funds. Although she was not involved in the hack itself, Morgan played a role in concealing the proceeds through various means, including purchasing non-fungible tokens, gold, and gift cards.

“She was in some ways thrust into the middle of a serious criminal scheme without her initial consent, and undoubtedly felt compelled to support it out of a sense of loyalty to her husband and desire to preserve their life together.”

Sophisticated Laundering Methods

Prosecutors described the couple’s laundering methods as sophisticated, noting that they used complex transactions, non-compliant virtual currency exchanges, darknet markets, and mixers and tumblers, such as Bitcoin Fog, Helix, and ChipMixer, to obscure the trail.

Potential Sentence Reduction Due to Cooperation

Despite the serious charges, Morgan could receive a reduced sentence due to her cooperation with authorities. However, she still faces up to five years for conspiring to defraud the U.S.

Razzlekhan’s Notoriety and Current Status

Morgan’s notoriety comes from her social media persona and rap performances under the moniker “Razzlekhan.” While Lichtenstein remains in jail, Morgan was granted house arrest on $3 million bail and has been permitted to work as a web3 advisor.

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