Where is Heather Morgan now? 'Razzlekhan' and husband Ilya Lichtenstein plead guilty to $4.5B Bitcoin theft
WASHINGTON, DC: Heather Morgan, a 31-year-old social media star and aspiring rapper known for her self-proclaimed persona as the 'Crocodile of Wall Street' and 'Razzlekhan', has made headlines after pleading guilty to her involvement in a money-laundering scheme that involved a staggering $4.5 billion worth of stolen cryptocurrency. Her husband, Ilya Lichtenstein, a Russian-born individual who once referred to himself as an angel investor in tech companies, also pleaded guilty in the same case.
The couple admitted to their roles in laundering around 120,000 Bitcoins, which were stolen during the 2016 hack of the crypto exchange Bitfinex. During a recent court hearing, Lichtenstein, in his mid-thirties, confessed to orchestrating the hack, and his wife later learned how the cryptocurrency was obtained. Lichtenstein now faces up to 20 years in prison, while Morgan could face up to 10 years behind bars.
Where is Heather Morgan now?
Morgan pleaded guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the United States. Meanwhile, Lichtenstein admitted to his guilt on charges of conspiracy to commit money laundering. Both of them appeared at the same courthouse Donald Trump appeared on Thursday, August 3. The former president was in Washington, DC, to face his third arraignment.
The couple eventually reached a deal with the government after experiencing several delays in their case. They were arrested in February 2022 and now face charges that carry a maximum combined sentence of 25 years in prison. Following their arrests, Morgan was released on a $3 million bond, whereas her husband was denied bail and has since remained in federal custody.
Despite the intense media scrutiny, Morgan recently secured a job at an undisclosed tech firm. The federal magistrate judge granted her attorney Eugene Gorokhov's request to modify the terms of her home confinement so that she can work three days a week from the tech company's New York City offices. Morgan will be working as a growth marketing and business development specialist.
'Largest financial seizure ever'
In March of last year, the couple asked to delay the case so as to start negotiating a plea deal. Federal authorities were initially opposed to bail for the couple due to a purported flight risk. Prosecutors argued in court that Morgan and Lichtenstein had “access to numerous fraudulent identities and documents purchased on the darknet, and the ability to easily acquire more." The feds asserted that the couple had been "setting up a contingency plan for a life in Ukraine and/or Russia prior to the COVID-19 pandemic.”
The pair reportedly used a portion of the stolen funds to purchase Non-Fungible Tokens (NFTs), gold, and a $500 Walmart gift card, according to the criminal complaint. The value of the stolen Bitcoin surged significantly since the 2016 hack, with the couple being arrested in early 2022 when the stolen coins were collectively worth $4.5 billion.
However, the government has managed to recover $3.6 billion of the stolen cryptocurrency from the Bitfinex hack, making it the "largest financial seizure ever" by the Justice Department, as per Daily Mail. Nevertheless, Lichtenstein will be kept in custody until sentencing, while Morgan will be confined to house arrest. As the legal proceedings unfold, Morgan's employment with the tech firm will probably be closely scrutinized.
