Heather Morgan, also known by her rap alias “Razzlekhan,” may face an 18-month prison sentence after pleading guilty to conspiring to launder cryptocurrency stolen in the 2016 Bitfinex hack.

Prosecutors made the recommendation after Morgan cooperated with investigators under a plea deal. Morgan’s husband, Ilya Lichtenstein, was the mastermind behind the hack, and prosecutors noted that while she did not participate in the actual theft, she later assisted in laundering the stolen funds. prosecutors stated:

While it is true the defendant did not participate in the original hack of Bitfinex, she was not a total stranger to the underlying offense.

The couple used complex techniques to obscure the stolen bitcoin, including darknet markets and cryptocurrency exchanges, while also purchasing non-fungible tokens (NFTs), gold, and even Walmart gift cards.

Prosecutors emphasized the gravity of the crime, stating:

The massive scale, extraordinary sophistication, and continuous and deliberate nature of the defendants’ criminal actions weigh in favor of a strong sentence.

However, they also acknowledged Morgan’s situation, pointing out that her involvement stemmed in part from her relationship with Lichtenstein. “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,” the filing explained. Morgan, who faces up to five years on each of two counts, is likely to receive a reduced sentence due to her cooperation.

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