Heather Morgan, known as the rapper “Razzlekhan,” is seeking to avoid additional prison time ahead of her upcoming sentencing for her involvement in laundering Bitcoin stolen from Bitfinex. Her legal team has requested that the court impose a sentence of time served, highlighting her difficult conditions during a week of pretrial incarceration, which included recovery from surgery and contracting COVID-19. They argue that Morgan has complied with her release terms since February 2022.
Morgan pleaded guilty in August 2023 to charges of money laundering and fraud related to the laundering of 120,000 Bitcoin, valued at around $8.2 billion, that her husband, Ilya Lichtenstein, had stolen from the exchange. Prosecutors are recommending a lenient 18-month sentence, asserting that Morgan was a lower-level participant in the scheme and played a minor role compared to Lichtenstein, who is facing a maximum of five years in prison for his more significant involvement.
In her defense, Morgan’s lawyers contend that she was unaware of her husband’s criminal activities until well after the fact and that she is deeply remorseful for her actions. They noted her efforts to distance herself from her public persona and have emphasized her employment and maturation since her release.
Morgan is scheduled for sentencing on November 15, while Lichtenstein’s sentencing is set for November 14. The outcomes of these cases will be closely watched, as they reflect broader issues of accountability and justice in the cryptocurrency space.
