Heather Morgan (aka Razzlekhan) and the $4.5 Billion Bitcoin Laundering Scheme
In 2016, hackers stole 119,756 Bitcoin from Bitfinex, worth $72 million at the time.
The stolen funds remained untouched until 2022, when Heather Morgan and her husband, Ilya Lichtenstein, were arrested for attempting to launder over $4.5 billion in Bitcoin.
Morgan, known online as "Razzlekhan," portrayed herself as a crypto entrepreneur and rapper, posting eccentric videos while secretly laundering funds.
She and Lichtenstein used darknet markets, fake identities, and crypto mixers to obscure the Bitcoin’s origins. However, law enforcement tracked their transactions using blockchain analysis, leading to their arrest and the largest financial seizure in U.S. history—over $3.6 billion in Bitcoin.
This case highlights how law enforcement can trace illicit crypto transactions despite efforts to launder them, reinforcing the need for stronger regulation and compliance in the crypto industry.
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