Self-proclaimed "crocodile of Wall Street", rapper Heather Morgan (also known as "Razzlekhan") and her husband Ilya Lichtenstein have been arrested and are accused of organising a "complicated money laundering process", as they are believed to have pocketed 119,754 bitcoins stolen in a hacking attack on the Bitfinex cryptocurrency exchange in 2016. At the time, the funds were valued at $71 million, but now they are worth dramatically more - around $4.5 billion, prosecutors said.
"Today's arrests, and the department's largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals", Deputy Attorney General Lisa O Monaco stated. "In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions".
Screenshot of an Instagram post by rapper Heather Morgan, also known as "Razzlekhan"
© Photo : razzlekhan
"Thanks to the meticulous work of law enforcement, the department once again showed how it can and will follow the money, no matter what form it takes".
The prosecution said that 25,000 bitcoins were transferred out of the wallet to accounts controlled by the couple. They then allegedly cashed out millions, buying gold and non-fungible tokens as well as other items such as Walmart gift cards used for personal expenses.
The charges include conspiracy to commit money laundering and conspiracy to defraud the US, but the couple is not accused of hacking the exchange.