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Amateur rapper’s man and wife who went to extreme lengths to launder stolen Bitcoin plead guilty | Science & Technology News
Ilya Lichtenstein and Heather Morgan entered into plea deals late last month, and no sentencing date has yet been set. At the time of their arrest, officials said they could face up to 20 years behind bars if convicted.
By Connor Sephton, Journalist @ConnorSephton
Friday 4 August 2023 04:13, UK
An amateur rapper and her husband have pleaded guilty to attempting to launder stolen Bitcoin.
Heather Morgan and Ilya Lichtenstein have gone to great lengths to convert billions of dollars in cryptocurrency into cash.
At the time of their arrest in 2022, the net worth of 120,000 Bitcoiners was worth $4.5 billion (£3.5 billion).
The US Department of Justice managed to recover $3.6bn (£2.8bn) of this sum, in what was the largest financial seizure in its history.
Although the pair were only accused of laundering this cryptocurrency and not stealing it, Lichtenstein has now admitted to being the one who hacked the Bitfinex exchange in 2016.
The 35-year-old then involved his wife in an elaborate plan that involved burying gold coins and burning documents in a dumpster in Kazakhstan.
Investigators had accused the couple of creating false identities to open online trading accounts and launder Bitcoin.
Investigators found folders labeled “characters” on Lichtenstein’s computer and a plastic bag labeled “burner phones” under his bed.
They also used the ill-gotten gains to purchase non-fungible tokens and Walmart gift cards.
Heather Morgan called herself “Razzlekhan” in her rap videos and claimed to be the “Wall Street Crocodile.”
She has also worked as a public speaker in the past, hosting an event in New York titled “How to Socially Engineer Your Way Into Anything.”
Her tips for staying under the radar at an event included wearing black T-shirts to look like security and layering as much as possible so you can change outfits at the last minute.
The couple reached a plea bargain at the end of last month and a sentencing date has not yet been set.
At the time of their arrest, authorities said they could face up to 20 years in prison if convicted.