US Couple Accused of Laundering Stolen Bitfinex Funds Arranges Plea Deal

Heather Morgan and Ilya Lichtenstein first came to attention after their arrest in 2022.

A couple accused of money laundering in connection with the 2016 hack of cryptocurrency exchange Bitfinex have reached a plea deal, Reuters reported on July 21.

Senior Judge Colleen Kollar-Kotelly has reportedly ordered prosecutors to submit copies of the plea agreements of defendants Heather Morgan and Ilya Lichtenstein by July 27, with a plea hearing scheduled for Aug. 3 in a Washington courthouse.

The Reuters information is based on current court documents. While not naming the documents in question, a summary of the documents filed on July 20 indicates that the magistrate cases for two individuals are closed, pending deadlines, motions and exclusions.

Morgan and Lichtenstein were arrested in February 2022 and accused of laundering approximately 100,000 BTC through the hack of Bitfinex six years earlier.

The case continues to develop

Earlier news revealed that the couple was suspected of laundering 119,756 Bitcoin (BTC). The stolen funds were worth nearly $3.6 billion when they were seized, and $4.5 billion when the incident came to light in February 2022. That amount is again worth $3.6 billion at current market prices.

Prosecutors charged the couple with conspiracy to launder money and conspiracy to defraud the United States. The charges carry possible maximum sentences of 20 and 5 years in prison, respectively.

In the current report, Reuters said prosecutors now aim to force Morgan and Lichtenstein to seize about $3 billion worth of assets based on the current spot prices of various cryptocurrencies. Incidentally, the requested assets include not only cryptocurrencies, but also gold coins “mined and recovered by law enforcement” in California.

Morgan and Lichtenstein maintained a public profile. Morgan pursued a career in online rapping under the pseudonym "Razzlekhan". Lichtenstein is a serial entrepreneur and amateur magician who runs a YouTube channel.

The couple's unusual personal lives and alleged high-profile crimes prompted Netflix to announce a series featuring the pair. The series has not yet been released.