‘Crocodile of Wall Street’ Sentenced to 18 Months for Aiding $4.5B Bitfinex Bitcoin Heist

Heather Morgan, also called Razzlekhan, received an 18-month prison sentence on Monday for her involvement in laundering proceeds from the 2016 Bitfinex hack. The self-proclaimed “Crocodile of Wall Street” collaborated with her husband to launder Bitcoin now valued at $10b.

Her sentencing comes shortly after her husband, Ilya Lichtenstein, was handed a five-year prison term for stealing 119,754 Bitcoin from the Bitfinex crypto exchange in 2016. Both admitted to their crimes last year, confessing to stealing over $3b in Bitcoin from the exchange.

Lichtenstein, aged 35, maintained that Morgan was not part of the actual hack, but she did assist in concealing the stolen Bitcoin.

In a video posted to X, Morgan said: “It’s over, and I’m very excited that I will soon be telling my story, sharing my thoughts, and telling you more about the creative and other endeavors I’ve been working on.”

My statement 🧞‍♀️#razzlekhan pic.twitter.com/janr9RD1Q2

— Heather "Razzlekhan" Morgan (@HeatherReyhan) November 18, 2024

Couple’s Cooperation with US Authorities Helped Reduce Their Prison Sentences

Both could have faced longer sentences, but Morgan persuaded Lichtenstein to help the US with other crypto prosecutions. This cooperation reduced their potential prison time.

Morgan and Lichtenstein used fake identities and transferred crypto in small amounts to avoid detection, according to court records. Authorities arrested them in Feb. 2022 at their luxury Wall Street apartment when the stolen Bitcoin was worth $71m.

‘Time Served’ Appeal Denied as Morgan Sentenced in Bitfinex Laundering Case

US District Judge Colleen Kollar-Kotelly addressed Morgan, stating that her “actions were deliberate,” and highlighted the elaborate planning involved. Although the judge recognized Morgan’s genuine remorse and her low likelihood of reoffending, she concurred with the prosecutors that imprisonment was necessary to deter other offences.

Last month, Morgan’s attorneys appealed in a Washington, DC federal court for a “time served” sentence. They pointed to the harsh conditions she endured during her brief pretrial detention, including recovering from surgery and contracting COVID-19.

She stayed free on personal recognizance, which allowed her release without bail, up until her sentencing. After serving her prison term, she will complete 36 months of supervised release and pay a $200 fine.

At the time of the Bitfinex hack, the stolen Bitcoin was worth around $71m. Today, with Bitcoin’s price surging to over $90,000, its value has reached billions. According to the government, the couple laundered 21% of the stolen amount.