Ilya Lichtenstein, once infamous for the 2016 Bitfinex cryptocurrency exchange hack, has become a cooperating witness for the US government. His involvement in a substantial crypto laundering scheme alongside Heather Morgan, his partner, has taken a new direction as he assists in a trial focused on the Bitcoin Fog crypto mixing service. This update comes from a recent Bloomberg report, highlighting Lichtenstein’s testimony against the mixing service used to disguise the origins of stolen funds.
The couple, often referred to as the “crypto couple,” faced arrest in 2022 for their role in attempting to launder $4.5 billion in crypto assets taken during the Bitfinex breach. They admitted their guilt last year. Lichtenstein’s recent court appearance sheds light on his prolonged unauthorized access to Bitfinex’s systems and his illicit activities involving major US crypto exchanges such as Coinbase and Kraken. He confessed to using Bitcoin Fog to clean his illicit gains at least ten times before moving on to other services.
The capture of Roman Sterlingov, believed to be the chief operator behind Bitcoin Fog, was a significant win for the Federal Bureau of Investigation (FBI) in 2021. Meanwhile, Lichtenstein and Morgan’s background adds a layer of intrigue to the case. Lichtenstein, also known by the nickname “Dutch,” has a LinkedIn profile that presents him as a technology entrepreneur, coder, and investor. Morgan, on the other hand, has a diverse background as a former Forbes columnist, the head of a copywriting business, and an eccentric YouTube rapper under the moniker “Razzlekhan.”
Their story is so captivating that Amazon MGM Studios is reportedly developing a feature film titled “Razzlekhan” about their lives and criminal endeavors. Netflix is also releasing a documentary into the matter.