A Chico native was just lately sentenced as a part of the most important financial seizure in U.S. historical past. The case concerned billions of {dollars} in stolen bitcoin which represented the U.S. Division of Justice’s largest financial seizure ever.
CHICO, Calif. – A Chico native was just lately sentenced as a part of the most important financial seizure in U.S. historical past. The case concerned billions of {dollars} in stolen bitcoin which represented the U.S. Division of Justice’s largest financial seizure ever.
Heather Morgan, 34, grew up in Chico. She pleaded responsible to conspiracy to commit cash laundering and in November 2024 was sentenced to 18 months. Morgan’s husband Ilya Lichtenstein, 35, pleaded responsible to conspiracy to commit cash laundering and was sentenced to five years. Prosecutors mentioned Lichtenstein had hacked the digital forex trade Bitfinex in 2016 to steal 119,754 bitcoins.
Heather Morgan and Ilya Lichtenstein (images from Alexandria County (VA) Sheriff’s Workplace)
On the time of the couple’s arrest in 2022, the Bitcoin was valued at $4.5 billion. By 2024, that bitcoin was price an estimated $10 billion. Lichtenstein and Morgan have been dwelling in New York Metropolis once they have been arrested in February 2022. They’d been dwelling in San Francisco across the time of the hack.
Deputy Lawyer Basic Lisa O. Monaco mentioned “In a futile effort to take care of digital anonymity, the defendants laundered stolen funds by means of a labyrinth of cryptocurrency transactions. Due to the meticulous work of regulation enforcement, the division as soon as once more confirmed the way it can and can observe the cash, it doesn’t matter what kind it takes.”
Heather Morgan 2022 mugshot (Alexandria County (VA) Sheriff’s Workplace
In response to prosecutors, Lichtenstein instructed his spouse concerning the hack over three years later. They mentioned he initially solicited her assist laundering the proceeds “with out explaining precisely what he was doing.”
Morgan “was definitely a keen participant and bears full accountability for her actions, however she was a lower-level participant,” prosecutors wrote.
The story gained worldwide consideration with media retailers describing Morgan and her husband because the ‘Bitcoin Bonnie and Clyde.” Earlier than her arrest, Heather Morgan was additionally recognized for her on-line rap movies the place she referred to as herself ‘Razzlekhan.’
@realrazzlekhan on YouTube
On her YouTube page, Razzlekan describes herself as a surreal artist and shameless rapper. She additionally posts DIY movies about upcycling clothes and accessories.
Throughout her time in Chico, Morgan attended Nice Valley Excessive Faculty and graduated in 2008. Her yearbooks reveal her pursuits in the science membership, and international tradition together with the worldwide, Asian and Japan golf equipment.
Heather Morgan, Nice Valley HS (Chico) Class of 2008
In one in every of her YouTube movies, Morgan described how she was not very fashionable whereas rising up in Northern California. “Nobody was attempting to do the issues I wished to do professionally in phrases of entrepreneurship, tech seeing the world,” Morgan mentioned.
She graduated from UC Davis with levels in economics and worldwide relations. She labored world wide in jobs associated to enterprise and finance, finally shifting to New York together with her husband Ilya Lichtenstein.
After her arrest, Morgan paused her movies till after her sentencing in November 2024. In a brand new collection of movies, she mentioned she appeared ahead to sharing the total story.
Heather Morgan goes by her rapper title Razzlekhan in her YouTube movies.
A brand new video posted on Dec. 11, 2024, reveals Razzlekahn discussing the ankle monitor she’s worn for 3 years. In one other latest video, she shared a video her husband posted from prison on X in which he admitted to hacking Bitfinex.
On Jan 10, 2025, Razzlekhan posted her first new rap video in three years titled Razzlekhan vs. America. Morgan can also be busy doing Cameo movies for her followers.
Over 96% of the stolen funds have been recovered, with assist from Lichtenstein, in accordance with protection lawyer Samson Enzer.
