‘Razzlekhan’ couple pleads guilty in Bitfinex bitcoin hack case

Notorious couple pleads guilty to counts of money laundering in one of the largest heists in crypto history

article-image

Alexander Supertramp/shutterstock modified by Blockworks

share

A year and a half after their arrest in February 2022, a husband and wife team have pled guilty to charges of money laundering and conspiracy related to the theft of $3.6 billion in digital assets — one of the largest heists in crypto history. 

Both Ilya Lichtenstein and Heather “Razzlekhan” Morgan faced Judge Colleen Kollar-Kotelly of the Federal District Court in Washington, D.C. on Thursday during separate hearings.

During the Thursday afternoon hearing, Morgan pled guilty to one count of money laundering and one count of conspiracy to defraud the United States. Each count carries a maximum of five years in jail.

Morgan told the court that she had a “growing awareness” that her husband — who paid rent to her in crypto as far back as 2014 — sourced his digital wealth through illegal means. Additionally, she became fully aware of his involvement in the 2016 hack on crypto exchange Bitfinex in “early 2020.” 

At that point, she became actively involved in the attempted money laundering process. Morgan said she took actions such as memorizing a Monero seed phrase, burying physical golden coins, and setting up a company designed, in part, to help launder funds through under the guise of B2B sales. 

Both Morgan and Lichtenstein are due to provide the court an update on restitution and forfeiture efforts on Nov. 3, and their sentencing date is still pending.

Lichtenstein, during his hearing, reportedly admitted to being behind the Bitfinex hack in 2016.

The couple was arrested in their Manhattan apartment in 2022 after a year-long investigation into the 2016 Bitfinex hack of nearly 120,000 BTC. The loss was worth the equivalent of $70 million at the time, but ballooned as high as $3.6 billion by the time government officials seized the stolen funds. The couple were not charged for the theft of the bitcoin itself. 

Per a July 20 court filing, the couple face two charges of money laundering conspiracy and one count of conspiracy to defraud the United States. Per the plea agreement, the couple will forfeit over $3 billion in assets

Morgan’s flamboyant, rapping alter-ego became a focal point for media attention following the arrests, and the couple have since been the subject of numerous documentaries. 

Katherine Ross contributed reporting.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

The MicroStrategy founder understood digital scarcity long before Bitcoin, and it’s a story of bubbles, brokers and a “monster bull run.”

article-image

DAS panelists shared strong venture capital takeaways, from how big a raise should be to the role VCs play in the industry

article-image

Titan Exchange CEO Chris Chung says Titan bests Solana’s incumbent DEX aggregator Jupiter on price 80% of the time

article-image

The SEC’s newest statement on PoW mining adds further clarity, though a commissioner points out its limits

article-image

Markets react to Fed Chair Jerome Powell’s comments at yesterday’s FOMC meeting

article-image

At DAS, the US president noted he’s called upon Congress to enact “simple, common-sense rules” for stablecoins and market structure