Nikolas Sargeant
Heather Morgan, known by her rap persona "Razzlekhan," has petitioned to avoid additional prison time for her role in laundering stolen Bitfinex Bitcoin. Her legal team filed the request on October 31 in a Washington, D.C. federal court.
The appeal emphasizes Morgan's difficult pretrial detention conditions, including post-surgery recovery and a COVID-19 infection. Her attorneys are pushing for a "time served" sentence, highlighting her full compliance with pretrial supervision since her February 2022 release.
Morgan pleaded guilty in August 2023 to money laundering and fraud charges connected to the laundering of 120,000 Bitcoin, valued at approximately $8.2 billion. While these charges carry a maximum 10-year sentence, prosecutors have recommended 18 months, citing her "substantial assistance" in the investigation.
Support for Lighter Sentence
Prosecutors acknowledge Morgan's limited involvement compared to her husband, Ilya Lichtenstein, noting she accessed only a small portion of the stolen funds. They suggest her participation stemmed from loyalty to Lichtenstein rather than criminal intent, stating she was "thrust into the middle of a serious criminal scheme without her initial consent."
Morgan's defense maintains she remained unaware of her husband's connection to the Bitfinex hack for over three years. They emphasize her "deep remorse" and efforts to distance herself from the Razzlekhan persona, which they describe as a "caricature" distinct from her true character.
The plea agreement reveals that Lichtenstein admitted to the Bitcoin theft and recruiting Morgan to help conceal approximately 25,000 Bitcoin through crypto mixers and privacy services.
Contrasting Sentences
Prosecutors have recommended a five-year sentence for Lichtenstein, reduced from a potential 20-year term due to his cooperation. They argue for a longer sentence given his primary role in the heist and previous involvement in a separate $200,000 crypto theft.
Morgan's sentencing is scheduled for November 15, following Lichtenstein's hearing on November 14. Amazon's production arm is developing a film titled "Razzlekhan," based on a 2022 New York Times article detailing the couple's involvement in the Bitfinex hack laundering scheme.
