Heather Morgan, known by her rap alias “Razzlekhan,” is appealing for leniency in sentencing, asking a Washington, D.C. federal court to consider a sentence of “time served” for her involvement in laundering Bitcoin stolen from Bitfinex by her husband, Ilya Lichtenstein. Morgan’s legal team filed this request on October 31, citing her brief pretrial detention, during which she faced challenging conditions, including post-surgical recovery and contracting COVID-19.
Compliance with Pretrial Supervision and Minor Role
Following her release in February 2022, Morgan adhered to all pretrial supervision requirements. Her attorneys argue that she was only partially aware of her husband’s activities, claiming she didn’t know about the Bitfinex hack until years after the crime. Morgan pleaded guilty in August 2023 to money laundering and fraud charges connected to the laundering of 120,000 Bitcoin, valued at $8.2 billion. These charges carry a maximum possible sentence of 10 years.
Prosecutors Recommend Lighter Sentence for Cooperation
Prosecutors have recommended an 18-month sentence, acknowledging her “substantial assistance” in the investigation. They noted her minor role in comparison to Lichtenstein’s, as she accessed only a small portion of the stolen funds. Prosecutors also highlighted that her involvement was likely motivated by loyalty to her husband rather than criminal intent, suggesting she was “thrust into the middle of a serious criminal scheme without her initial consent.”
Morgan’s legal team also argued she has distanced herself from her “Razzlekhan” persona, describing it as a “caricature” and emphasizing Morgan’s personal growth and remorse for her actions.
Lichtenstein Faces Harsher Sentence
U.S. prosecutors recommended a five-year sentence for Lichtenstein, down from a potential 20 years due to his cooperation. His central role in the heist and prior involvement in a separate $200,000 crypto theft contributed to the recommended lengthier sentence compared to Morgan’s. Lichtenstein admitted to moving 25,000 Bitcoin through privacy services to conceal the funds.
The sentencing hearings are scheduled for November 14 and 15 for Lichtenstein and Morgan, respectively. Additionally, Amazon’s production arm is reportedly developing a film, “Razzlekhan,” based on the couple’s involvement in the case, inspired by a 2022 New York Times article detailing their story.
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