Bitfinex hackers Ilya Lichtenstein and Heather Morgan have pleaded guilty to the 2016 theft of more than 119,000 bitcoin from the cryptocurrency exchange Bitfinex.
Bitfinex, which is owned by the same company responsible for the world’s largest stablecoin Tether (USDT), was breached when the couple initiated more than 2,000 unauthorised transactions that sent the stolen bitcoin to a digital wallet under Lichtenstein’s control.
In the following five years, approximately 25,000 of those stolen bitcoin were transferred out of Lichtenstein’s wallet via a complicated money-laundering process that ended with some of the stolen funds being deposited into financial accounts controlled by Lichtenstein and Morgan.
At the time of the theft, the stolen bitcoins were worth US$71 million. Today their value is closer to US$3.5 billion.
Initially, Lichtenstein and Morgan were suspected of just laundering the stolen bitcoins.
However, in a recent court hearing, Lichtenstein also confessed to executing the Bitfinex hack using advanced hacking tools and techniques to infiltrate Bitfinex's network.
Heather Morgan became an internet meme in 2022 under her cringe-rap alias Razzlekhan.
Wearing trademark steampunk sunglasses, ‘OFCKS’ hat and a gold jacket, she regularly uploaded videos and posts to YouTube and Instagram, rapping about subjects such as crypto, coronavirus and fashion.
On her website, she describes herself as “a software CEO, a writer, an economist, and a few contradictory other things”. She has previously been a contributing writer to Forbes.
Her bio reads: “The infamous Crocodile of Wall Street strikes again! More fearless and more shameless than ever before, she's taking on everyone from big software companies to healthcare to finance bros.”
Unfortunately, Razzlekhan’s thirst for attention may have put her in the spotlight of authorities, eventually leading to her and her boyfriend’s arrest.
She pleaded guilty to one count of money laundering and one count of conspiracy to defraud the US, and admitted to having a "growing awareness" of her husband's ill-gotten wealth.
She confessed to helping launder the funds, testifying that the laundering was at Lichtenstein's direction.
The couple's guilty pleas were entered into as part of a cooperation agreement with authorities. Sentencing is pending.