London Daily

Focus on the big picture.
Sunday, Jan 18, 2026

Cryptocurrency worth billions seized after couple arrested in connection with exchange hack

Cryptocurrency worth billions seized after couple arrested in connection with exchange hack

A New York couple have been arrested accused of conspiring to launder bitcoin that was stolen during the massive breach more than six years ago.

The US has seized $3.6bn (£2.65bn) in bitcoin and announced the arrests of a couple accused of conspiring to launder cryptocurrency that was stolen in a 2016 hack of Bitfinex, a virtual currency exchange.

The Department of Justice said the action represents its largest-ever financial seizure.­­

Ilya Lichtenstein and his wife Heather Morgan are accused of conspiring to launder the proceeds of 119,754 bitcoins after a hacker attacked Bitfinex and initiated more than 2,000 transactions.

The funds were valued at $71m (£52m) at the time but are now worth over $4.5bn (£3.3bn), according to officials.

The couple had active public profiles, especially Ms Morgan, a rapper who goes by the name "Razzlekhan," a pseudonym she said on her website referred to Genghis Khan "but with more pizzazz".

Ms Morgan, a former Forbes contributor, describes herself as an investor, surrealist artist and fashion designer - and even declared herself the "Crocodile of Wall Street" in one of her songs.

How US officials recovered the funds


Matthew Graves, the US attorney for the District of Columbia, said the money moved through a major darknet exchange linked to a host of crimes.

The stolen bitcoin was allegedly sent to a digital wallet controlled by Mr Lichtenstein.

Over the last five years, 25,000 of these bitcoin were transferred out of the wallet using a "complicated money laundering process" and into financial accounts controlled by the couple, prosecutors said.

Millions of dollars were allegedly cashed out through bitcoin ATMs, with proceeds used to buy gold and non-fungible tokens as well as other items such as Walmart gift cards used for personal expenses.

The remaining funds - more than 94,000 bitcoin - allegedly stayed in the wallet used to store the illegal proceeds from the hack.

Search warrants allowed special agents to gain access to files in an online account allegedly controlled by Mr Lichtenstein, which contained the private keys to access the wallet.

All of the funds that were in the wallet were seized, with a value of more than $3.6bn (£2.65bn).

Cryptocurrency 'not a safe haven for criminals'


The couple have been accused of using fake identities to set up online accounts, using computer programmes to automate financial transactions, depositing the stolen funds into "darknet markets" and then withdrawing them to hide their movement, and using US-based business accounts to legitimise their banking activity.

"Today's arrests, and the department's largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals," said Deputy Attorney General Lisa O Monaco.

"In a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions.

"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."

Mr Lichtenstein, 34, and Mrs Morgan, 31, are charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in jail, and conspiracy to defraud the US, which carries a maximum sentence of five years in prison.

The couple were not charged in the Bitfinex hack.

They are due to appear in court later on Tuesday.

Newsletter

Related Articles

0:00
0:00
Close
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
×