London Daily

Focus on the big picture.
Monday, Jun 01, 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
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×