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Crocodile of Wall St Heather Morgan husband Ilya Lichtenstein argue they are not a flight risk bail

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A lawyer for the self-proclaimed ‘Crocodile of Wall Avenue’, Heather Rhiannon Morgan, 31, and her husband Ilya ‘Dutch’ Lichtenstein, 34, declare neither of them are ‘flight dangers’ as a result of Morgan has frozen embryos within the metropolis.

The couple’s lawyer, Samson Enzer, has urged a decide to permit them to be freed on $3million and $4.5million bail respectively, saying the actual fact neither of them fled when given the possibility upon first being alerted to the investigation, proves they’d not run from the regulation if now freed on bail.  

Prosecutors are urging warning: It’s believed the couple nonetheless have huge sums of cash at their disposal which is probably going hidden from authorities. 

Moreover, Lichtenstein has twin citizenship with Russia giving the couple a attainable secure haven from which it will be significantly tough for U.S. authorities to safe an extradition order ought to the couple select to flee.

The pair, dubbed ‘Bitcoin Bonnie and Crypto Clyde’ by monetary publication Morning Brew, have been each arrested on Tuesday on federal expenses of conspiracy to commit cash laundering and conspiracy to defraud the USA for allegedly laundering $4.5billion in Bitcoin stolen within the 2016 Bitfinex trade hack. 

If convicted, they resist a most of 25 years in jail.    

A lawyer for the self-proclaimed ‘Crocodile of Wall Avenue’, Heather Rhiannon Morgan, 31, and her husband Ilya ‘ Dutch ‘ Lichtenstein, 34, proper, has urged a decide to permit them to be freed on $3million and $4.5million bail respectively 

Prosecutors argued that the pair, who dwell on Wall Avenue in Decrease Manhattan, needs to be denied bail, calling them flight dangers who nonetheless doubtlessly have entry to huge sums of cash. 

Lichtenstein, is a twin US-Russian nationwide from Illinois, whereas Morgan hails from California.

The couple’s lawyer claims the couple need to begin a household and wouldn’t run away from her fertilized eggs. 

‘Morgan beforehand froze a number of of her embryos at a hospital in New York in anticipation of beginning a household collectively, as she will be able to solely conceive by in vitro fertilization as a result of she suffers from endometriosis,’ the couple’s lawyer Samson Enzer wrote in a submitting.

In this courtroom sketch, attorney Sam Enzer, center, sits between Heather Morgan, left, and her husband, Ilya 'Dutch' Lichtenstein, in federal court on Tuesday

On this courtroom sketch, legal professional Sam Enzer, middle, sits between Heather Morgan, left, and her husband, Ilya ‘Dutch’ Lichtenstein, in federal courtroom on Tuesday

‘The couple would by no means flee from the nation on the threat of dropping entry to their skill to have youngsters, which they have been discussing having this 12 months till their lives have been disrupted by their arrests on this case,’ Enzer defined.    

Federal regulation enforcement officers mentioned they’ve recovered roughly $3.6 billon in cryptocurrency – the Justice Division’s largest ever monetary seizure – linked to the hack of Bitfinex, a digital forex trade based mostly in Hong Kong, whose programs have been breached almost six years in the past. 

Enzer additionally tried to clarify how properly behaved his shoppers had been since they have been alerted of the investigation into them.

‘Each stayed put of their residence in decrease Manhattan … even after the federal government’s investigation concentrating on them on this case’ a number of months in the past.    

The couple say they have no intention of fleeing because Morgan has frozen embryos stored in New York because the pair had intentions to start a family

The couple say they don’t have any intention of fleeing as a result of Morgan has frozen embryos saved in New York as a result of the pair had intentions to begin a household 

The courtroom submitting comes simply days earlier than the couple’s subsequent scheduled bail listening to in U.S. District Court docket in Washington, D.C., on Monday. 

Choose Beryl Howell will then make a willpower on what’s finest for the pair whereas they await trial. 

On Thursday, Choose Howell ordered the pair to be dropped at Washington for subsequent week’s listening to.   

Enzer pleaded with Choose Howell for her to stay with the agreements already made with Manhattan federal courtroom Choose Debra Freeman.

Freeman had set bond at $5 million for Lichtenstein and $3 million for Morgan along with added situations of house incarceration and location-monitoring gadgets.

However the bail ruling was in the end blocked after Choose Freeman took discover of prosecutors believing the pair to be a flight threat, studies CNBC.  

Morgan was arrested on Tuesday in Manhattan, together with her husband, on federal charges of conspiracy to commit money laundering and conspiracy to defraud the United States

Morgan was arrested on Tuesday in Manhattan, collectively along with her husband, on federal expenses of conspiracy to commit cash laundering and conspiracy to defraud the USA

‘Choose Freeman appropriately determined that the federal government has failed to satisfy its burden of exhibiting that there are not any bail situations that will fairly guarantee that Ms. Morgan and Mr. Lichtenstein will seem as required for additional courtroom proceedings on this case.’

‘This courtroom ought to uphold Choose Freeman’s well-reasoned bail rulings,’ Enzer wrote. 

Their lawyer additionally famous the couple had each probability to flee since they have been alerted to the federal government investigation into their dealings, however chosen to stay the place they have been. 

‘The federal government had regulation enforcement brokers execute a search warrant at their New York residence,’ Enzer wrote.

‘Though federal brokers seized Mr. Morgan’s and Mr. Lichtenstein’s journey paperwork, quite a few digital gadgets, and different property from their house on January 5 (and left a duplicate of the warrant indicating that it was granted as a part of an investigation right into a money-laundering conspiracy and different alleged offenses), the couple took no steps to flee,’ Enzer defined.

The couple's lawyer noted that they had every chance to flee since they were alerted to the government investigation into their dealings, but chosen to remain where they were

The couple’s lawyer famous that that they had each probability to flee since they have been alerted to the federal government investigation into their dealings, however chosen to stay the place they have been

‘Ms. Morgan and Mr. Lichtenstein don’t have any cause to flee to keep away from the federal government’s allegations, as the federal government’s grievance reveals vital holes within the authorities’s case towards them, particularly as to Ms. Morgan,’ Enzer detailed.

‘The cash-laundering accusations within the authorities’s grievance are predicated on a sequence of circumstantial inferences and assumptions drawn from a posh internet of convoluted blockchain-and cryptocurrency-tracing assertions,’ he added. 

Enzer additionally harassed that the couple wanted to be saved out of jail with a purpose to put together a protection for his or her trial and famous how Morgan suffers from numerous medical situations together with surgical procedure to take away a lump in her breast and ‘pre-existing lung injury from a previous bout of Center East Respiratory Syndrome, or MERS,’ which put her at enhance threat for catching covid. 

Bail for Ilya 'Dutch' Lichtenstein, 34, right, and his wife, Heather Rhiannon Morgan, 31, was set at $5million and $3million respectively after their arrest on Tuesday but they have not been released

Bail for Ilya ‘Dutch’ Lichtenstein, 34, proper, and his spouse, Heather Rhiannon Morgan, 31, was set at $5million and $3million respectively after their arrest on Tuesday however they haven’t been launched

Earlier this week, the Justice Division shared extra info as to the progress with the investigation. 

It revealed on Tuesday that greater than $3.6 billion price of bitcoin linked the 2016 hack has been seized having allegedly been in crypto wallets managed by the couple.

When the breach occurred, 120,000 bitcoins have been allegedly transferred right into a crypto pockets that Lichtenstein nonetheless had entry to final month.

The bitcoin that was price $71 million when the hack occurred is now price greater than $4.5 billion.        

Prosecutors additionally acknowledged how regardless of having recovered ‘nearly all of the stolen funds, there are not less than 24 digital present addresses linked to the hack [and believed to be in the defendants’ control] for which regulation enforcement doesn’t posses the personal keys.

‘The remaining addresses include about 7,500 bitcoin, which is at present valued at over $328 million,’ prosecutors mentioned.

‘The defendants are refined cyber criminals and cash launderers who current a severe threat of flight and needs to be detained pending trial,’ they added.         

Photos of self proclaimed 'Crocodile of Wall Street' Heather Morgan who was arrested in New York over an alleged Bitcoin hack. Photos of Morgan were taken in June 2020

Pictures of self proclaimed ‘Crocodile of Wall Avenue’ Heather Morgan who was arrested in New York over an alleged Bitcoin hack. Pictures of Morgan have been taken in June 2020

When Morgan wasn’t allegedly shifting round billions of {dollars} on the earth of cryptocurrency, she was taking to the mic and capturing rap movies. 

The would-be company influencer raps about entrepreneurship, designs purses impressed by ketchup squirts, and indicators off from her motivational YouTube movies with the phrases ‘razzle-dazzle.’ 

In a sequence of cringey movies posted to YouTube, the wannabe performer might be seen strolling round Wall Avenue whereas reciting lyrics equivalent to: ‘I am many issues, a rapper, an economist, a journalist, a author, a CEO, and a unclean, soiled, soiled soiled h*’. 

Morgan’s music movies, together with the 2019 single Versace Bedouin, have been all on her YouTube web page till earlier this week. The web page has been made personal since her arrest.

One web site which determined to wade by the entire footage advised ‘Laundering billions in Bitcoin could not even be the worst crime of her life.’ 

‘When she’s not reverse-engineering black markets to think about higher methods to fight fraud and cybercrime, she enjoys rapping and designing streetwear style,’ her Forbes bio states. 

Morgan, 31, who calls herself the 'Crocodile of Wall Street' (hence the croc pictured in her hand) also spends time creating low-budget rap videos and posing for quirky photoshoots

Heather Morgan, 31, who calls herself the ‘Crocodile of Wall Avenue’ (therefore the croc pictured in her hand) additionally spends time creating low-budget rap movies and posing for quirky photoshoots 

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Social media users did also not hold back as viewers to Morgan's rapping footage gave their verdict

Social media customers did additionally not maintain again as viewers to Morgan’s rapping footage gave their verdict

Social media did additionally not maintain again as viewers to footage gave their verdict. 

‘This ‘rapper’ with an alias of RAZZLEKHAN aka Heather Morgan was charged right now in NYC, with being a part of cash laundering scheme that concerned Billions price of Bitcoin. I consider she ought to have already been in jail for all times for no matter that is,’ wrote one consumer.

‘It is like Fyre Pageant in human type,’ declared one other whereas one other declaringL ‘that is the larger crime!’ 

‘I wanna know who the audio engineer was, and what they went by’ requested one other Twitter follower. 

‘Bass line appears like a fart that by no means ends,’ wrote DJ Goldman Sachs making an attempt to critique the providing.    

Morgan says that she experiences synesthesia when music might be heard however shapes or colours might be seen.    

Her web site explains that ‘Similar to her fearless entrepreneurial spirit and hacker mindset, Razz shamelessly explores new frontiers of artwork.’ 

During the early stages of the pandemic, Morgan took some time out for a photoshoot

In the course of the early levels of the pandemic, Morgan took a while out for a photoshoot

Morgan’s songs, which don’t seem to have attracted a lot discover earlier than her arrest, additionally embrace traces like ‘You do not even know me/Begin an organization at 23.’ In that monitor, she threatens, ‘Acquired no clue what I am about/Might intestine you want a trout!’

In her rap songs, Morgan proclaims herself as a ‘actual threat taker’ and a ‘dangerous ass cash maker.’ However the lyrics additionally take some odd detours, together with calling herself a ‘Turkish Martha Stewart,’ the ‘Crocodile of Wall Avenue,’ or a ‘Versace Bedouin.’ (‘Acquired the bling that win,’ she provides.)

Morgan mentioned in a single video the business-meets-hip-hop shtick was a put-on – ‘a hyperbole of myself’ – however she appeared dedicated to the act. One rap video featured her in a gold monitor swimsuit pacing throughout the New York monetary district.

Morgan’s different creative pursuits embrace designing ‘berazzled’ purses based mostly on condiment squirts, and rings created with prosthetic eyeballs.

She has written a number of articles for Mic and Forbes, together with one titled, partially, ‘Tricks to Shield Your Enterprise from Cybercriminals.’ 

Morgan says that she experiences synesthesia which happens when music can be heard but shapes or colors can be seen. She is pictured bathed in red

Morgan says that she experiences synesthesia which occurs when music might be heard however shapes or colours might be seen. She is pictured bathed in purple

Opinions of her rapping do not current her in probably the most optimistic gentle however it’s nonetheless accessible on-line. 

‘Her supply is tuneless, the bars are cringe and the accompanying music video is not a lot better,’ declared Engadget. 

In a single set of lyrics, Morgan might be heard rapping concerning the scheme she is alleged to have carried out.    

‘Spearfish your password / all of your funds transferred,’ she says. 

‘All the time be a GOAT, not a god rattling sheep,’ she states in one other.  

‘Spirit of a revolutionary, energy of a dictator / like to be opposite, however I am fly like a gator,’ the rap continues within the low-budget trying video. 

They do not get a lot better in one other riff: ‘Sure that was tacky/not less than I am not sleazy,’ she proclaims as her alter-ego named Razzlekhan.

In a single music, ‘Moon ‘n Stars,’ she raps about her husband calling him a  a ‘weirder model of Larry David’ sampling him saying, ‘I really like you, I assist you, however I do not wanna be concerned.’

A picture of Heather Morgan, also known as "Razzlekhan," on a phone in front of the Bitcoin logo

An image of Heather Morgan, also called ‘Razzlekhan,’ on a telephone in entrance of the Bitcoin brand

On her web site, Morgan calls herself ‘Razzlekhan’ or the ‘Versace Bedouin’ — ‘the raunchy rapper with extra pizzazz that Genghis Khan.’

‘I am an actual threat taker/pirate driving the flood/I am a badass cash maker,’ she raps in a single video by which she refers to herself because the ‘Crocodile of Wall Avenue.’

‘Come actual far however do not know the place I am headed/Blindly following guidelines is for fools,’ she says, gyrating on Wall Avenue carrying sun shades, a leopard print scarf, and glossy gold jacket. 

‘Her artwork typically resembles one thing in between an acid journey and a pleasant nightmare,’ Morgan wrote about herself on her web site, Razzlekhan.com. ‘Undoubtedly not for the faint of coronary heart or simply offended.

‘Razz likes to push the boundaries of what persons are snug with,’ she mentioned. ‘Her model has typically been described as ‘horny horror comedy.”

In whole, there are a couple of dozen songs protecting all method of matters together with one the place the raps about smoking weed in a cemetery and a well timed rap about social distancing in ‘Excessive within the Cemetery.’ 

Within the monitor ‘Cutthroat Nation’ she raps about phishing individuals’s passwords. ‘All of your funds transferred,’ she states.

Different songs focus on the American healthcare system and its flaws and the way faux associates suck ‘like a vacuum cleaner’ within the music of the identical title.

She adopts a freestyle rapping in one other monitor about investing in GameStop, Ethereum, and Bitcoin.

Reviews of her rapping don't present her in the most positive light but her library is still available online

Opinions of her rapping do not current her in probably the most optimistic gentle however her library remains to be accessible on-line

Lichtenstein and Morgan are thus far not charged directly with perpetrating the hack, but rather with receiving and laundering the stolen funds

Lichtenstein and Morgan are to this point not charged instantly with perpetrating the hack, however fairly with receiving and laundering the stolen funds

Morgan and her husband are accused of conspiring to launder 119,754 bitcoin that was stolen, after a hacker attacked Bitfinex and initiated more than 2,000 unauthorized transactions

Morgan and her husband are accused of conspiring to launder 119,754 bitcoin that was stolen, after a hacker attacked Bitfinex and initiated greater than 2,000 unauthorized transactions

In response to Morgan’s movies and Fb postings, she grew up in California, the daughter of a biologist and a highschool librarian.

She graduated from the College of California, Davis, and went to work as an economist after doing graduate work on the American College in Cairo.

Morgan mentioned she finally turned a ‘serial software program entrepreneur who began a number of profitable firms’ together with one referred to as SalesFolk.

Extra discreet on-line, Lichtenstein described himself on LinkedIn as a ‘expertise entrepreneur, coder and investor’ and the founding father of a number of tech firms.

In a Fb put up, he recalled how he proposed to Morgan — ‘my finest buddy and the girl of my desires!’

It concerned what Lichtenstein referred to as a ‘bizarre, inventive multi-channel advertising marketing campaign’ that noticed posters of ‘Razzlekhan’ plastered throughout New York Metropolis and her face on a Occasions Sq. billboard.

In a single YouTube video, Morgan mentioned her mother and father ‘did not have some huge cash.’

‘I’ve additionally been completely broke and homeless a number of occasions,’ she mentioned. ‘Cash comes and goes. Typically you’ve gotten it, generally you do not.

‘It is very nice when you’ve gotten it however nothing on this life is definite,’ she mentioned. ‘Proper now I am mainly residing my ultimate life.’ 

Morgan describes herself as 'an expert in persuasion, social engineering, and game theory'

Morgan describes herself as ‘an skilled in persuasion, social engineering, and sport concept’

Morgan, who raps under the name Razzlekhan, (seen in front of Federal Hall on Wall Street in a music video) declared herself the 'Crocodile of Wall Street' in one of her rap songs

Morgan, who raps underneath the title Razzlekhan, (seen in entrance of Federal Corridor on Wall Avenue in a music video) declared herself the ‘Crocodile of Wall Avenue’ in certainly one of her rap songs

Lichtenstein is a citizen of each Russia and the USA and the co-founder of an internet advertising agency. Morgan, a rapper and former Forbes contributor, describes herself as ‘an skilled in persuasion, social engineering, and sport concept’. 

The August 2016 Bitfinex hack itself was one of many largest crypto heists ever recorded – so huge that information of the theft knocked 20 % off Bitcoin’s worth on the time. 

Lichtenstein and Morgan are to this point not charged instantly with perpetrating the hack, however fairly with receiving and laundering the stolen funds. The case was filed in a federal courtroom in Washington, D.C.

The couple is accused of conspiring to launder 119,754 bitcoin that was stolen, after a hacker attacked Bitfinex and initiated greater than 2,000 unauthorized transactions.

The couple is accused of conspiring to launder 119,754 bitcoin that was stolen, after a hacker attacked Bitfinex and initiated more than 2,000 unauthorized transactions'

The couple is accused of conspiring to launder 119,754 bitcoin that was stolen, after a hacker attacked Bitfinex and initiated greater than 2,000 unauthorized transactions’

The grievance alleges, the FBI and federal prosecutors have been capable of hint the motion of Bitcoin from this hack,’ mentioned Matthew Graves, the U.S. Legal professional for the District of Columbia.

He added that the cash moved by a serious darknet trade tied to a number of crimes, in addition to cryptocurrency addresses tied to youngster sexual abuse supplies.

Lichtenstein and Morgan are going through expenses of conspiring to commit cash laundering, in addition to to defraud the USA.

Prosecutors mentioned on Tuesday the unlawful proceeds have been spent on a wide range of issues, from gold and non-fungible tokens to ‘completely mundane issues equivalent to buying a Walmart reward card for $500.’

The August 2016 Bitfinex hack itself was one of the largest crypto heists ever recorded - so massive that news of the theft knocked 20 percent off Bitcoin's value

The August 2016 Bitfinex hack itself was one of many largest crypto heists ever recorded – so huge that information of the theft knocked 20 % off Bitcoin’s worth

Bitfinex mentioned in an announcement that it was to working with the Division of Justice to ‘set up our rights to a return of the stolen bitcoin.’

‘We have now been cooperating extensively with the DOJ since its investigation started and can proceed to take action,’ the corporate mentioned. 

Bitfinex mentioned it intends to supply additional updates on its efforts to acquire a return of the stolen bitcoin as and when these updates can be found. 

Tuesday’s legal grievance got here greater than 4 months after Monaco introduced the division was launching a brand new Nationwide Cryptocurrency Enforcement Staff, which is comprised of a mixture of anti-money laundering and cybersecurity specialists.

Cyber criminals who assault firms, municipalities and people with ransomware typically demand cost within the type of cryptocurrency.

In a single high-profile instance final 12 months, hackers brought on a widespread gasoline scarcity on the U.S. East Coast when through the use of encryption software program referred to as DarkSide to launch a cyber assault on the Colonial Pipeline.

The Justice Division later recovered some $2.3 million in cryptocurrency ransom that Colonial paid to the hackers.

Instances like these display that the Justice Division ‘can observe cash throughout the blockchain, simply as we now have at all times adopted it throughout the conventional monetary system,’ mentioned Kenneth Well mannered, assistant legal professional common of the division’s Felony Division. 

Morgan is seen rapping with the New York Stock Exchange behind her to the right

Morgan is seen rapping with the New York Inventory Change behind her to the proper

Justice Division officers say that although the proliferation of cryptocurrency and digital forex exchanges characterize innovation, the development has additionally been accompanied by cash laundering, ransomware and different crimes

‘At the moment´s arrests, and the Division’s largest monetary seizure ever, present that cryptocurrency is just not a secure haven for criminals,’ Deputy Legal professional Common Lisa Monaco mentioned in an announcement. 

‘In a futile effort to keep up digital anonymity, the defendants laundered stolen funds by a labyrinth of cryptocurrency transactions. Because of the meticulous work of regulation enforcement, the division as soon as once more confirmed the way it can and can observe the cash, irrespective of the shape it takes.’  

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