The self-proclaimed ‘Crocodile of Wall Avenue’ and her husband have been granted bail set at $3million and $5million respectively after being arrested for allegedly laundering $4.5billion in Bitcoin stolen within the 2016 Bitfinex trade hack.
Ilya ‘Dutch’ Lichtenstein, 34, and his spouse, Heather Rhiannon Morgan, 31, who raps beneath the identify Razzlekhan, had been arrested on Tuesday in Manhattan on federal costs of conspiracy to commit cash laundering and conspiracy to defraud the USA.
At an preliminary courtroom look, a Justice of the Peace decide dominated Lichtenstein might be launched into residence detention on a $5 million bond co-signed by his dad and mom; the bond quantity for Morgan was set at $3 million however they had been to stay in custody till the bail circumstances had been met.
Prosecutors had argued defendants, who reside on Wall Avenue in decrease Manhattan, needs to be denied bail, calling them flight dangers who nonetheless probably have entry to huge sums of cash.
Federal legislation enforcement officers stated they recovered roughly $3.6 billon in cryptocurrency – the Justice Division’s largest ever monetary seizure – linked to the hack of Bitfinex, a digital foreign money trade whose programs had been breached almost six years in the past.
Lichtenstein is a citizen of each Russia and the USA and the co-founder of an internet advertising and marketing agency. Morgan, a rapper and former Forbes contributor, describes herself as ‘an knowledgeable in persuasion, social engineering, and sport principle’.
WARNING: EXPLICIT LYRICS
Bail for Ilya ‘Dutch’ Lichtenstein, 34, and his spouse, Heather Rhiannon Morgan, 31, was set at $5million and $3million respectively after their arrest on Tuesday for allegedly laundering $4.5billion in Bitcoin stolen within the 2016 Bitfinex trade hack
Morgan, who raps beneath the identify Razzlekhan, (seen in entrance of Federal Corridor on Wall Avenue in a music video) declared herself the ‘Crocodile of Wall Avenue’ in one in every of her rap songs
On this courtroom sketch, lawyer Sam Enzer, middle, sits between Heather Morgan, left, and her husband, Ilya ‘Dutch’ Lichtenstein, in federal courtroom on Tuesday
‘I am many issues, a rapper, an economist, a journalist, a author, a CEO, and a unclean, soiled, soiled soiled h*,’ she raps in her 2019 single, Versace Bedouin.
‘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 reads.
The August 2016 Bitfinex hack itself was one of many largest crypto heists ever recorded – so huge that information of the theft knocked 20 p.c off Bitcoin’s worth on the time.
Lichtenstein and Morgan are to this point not charged straight with perpetrating the hack, however slightly with receiving and laundering the stolen funds. The case was filed in a federal courtroom in Washington, D.C.
It was unclear who will likely be representing the couple within the felony case and whether or not they had an lawyer to talk on their behalf.
They had been on account of seem in federal courtroom in Manhattan at 3 p.m. on Tuesday.
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.
Morgan, a rapper and former Forbes contributor, describes herself as ‘an knowledgeable in persuasion, social engineering, and sport principle’
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
Justice Division officers stated the transactions on the time had been valued at $71 million in Bitcoin, however with the rise within the foreign money’s worth, it’s now valued at over $4.5 billion.
‘Because the grievance alleges, the FBI and federal prosecutors had been in a position to hint the motion of Bitcoin from this hack,’ stated Matthew Graves, the U.S. Lawyer for the District of Columbia.
He added that the cash moved by means of a serious darknet trade tied to a number of crimes, in addition to cryptocurrency addresses tied to baby sexual abuse supplies.
Lichtenstein and Morgan are dealing with costs of conspiring to commit cash laundering, in addition to to defraud the USA.
Prosecutors stated on Tuesday the unlawful proceeds had been spent on a wide range of issues, from gold and non-fungible tokens to ‘completely mundane issues reminiscent of buying a Walmart present card for $500.’
Bitfinex stated 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’ve got been cooperating extensively with the DOJ since its investigation started and can proceed to take action,’ the corporate stated.
Bitfinex stated it intends to offer additional updates on its efforts to acquire a return of the stolen bitcoin as and when these updates can be found.
Tuesday’s felony grievance got here greater than 4 months after Monaco introduced the division was launching a brand new Nationwide Cryptocurrency Enforcement Group, which is comprised of a mixture of anti-money laundering and cybersecurity consultants.
The August 2016 Bitfinex hack itself was one of many largest crypto heists ever recorded – so huge that information of the theft knocked 20 p.c off Bitcoin’s worth
Lichtenstein and Morgan are dealing with costs of conspiring to commit cash laundering, in addition to to defraud the USA
Morgan is seen rapping with the New York Inventory Change behind her to the correct
Cyber criminals who assault firms, municipalities and people with ransomware typically demand fee within the type of cryptocurrency.
In a single high-profile instance final 12 months, hackers prompted a widespread gasoline scarcity on the U.S. East Coast when by utilizing 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.
Circumstances like these display that the Justice Division ‘can comply with cash throughout the blockchain, simply as now we have all the time adopted it inside the conventional monetary system,’ stated Kenneth Well mannered, assistant lawyer basic of the division’s Prison Division.
Justice Division officers say that although the proliferation of cryptocurrency and digital foreign money exchanges characterize innovation, the pattern has additionally been accompanied by cash laundering, ransomware and different crimes
‘At present´s arrests, and the Division´s largest monetary seizure ever, present that cryptocurrency shouldn’t be a secure haven for criminals,’ Deputy Lawyer Basic Lisa Monaco stated in an announcement.
‘In a futile effort to keep up digital anonymity, the defendants laundered stolen funds by means of a labyrinth of cryptocurrency transactions. Due to the meticulous work of legislation enforcement, the division as soon as once more confirmed the way it can and can comply with the cash, irrespective of the shape it takes.’