Bitfinex 2016 hack (Razzlekhan)
About 119,754 BTC were stolen from the Bitfinex exchange in August 2016. In 2022 the U.S. DOJ arrested Ilya Lichtenstein and Heather Morgan ('Razzlekhan') for laundering the proceeds; both pleaded guilty, and Lichtenstein was sentenced to five years in 2024.
Also known as: Bitfinex hack, Ilya Lichtenstein, Heather Morgan, Razzlekhan
Summary
In August 2016, roughly 119,754 bitcoin (worth about $72 million at the time) were stolen from the Hong Kong-based exchange Bitfinex in a security breach. The stolen coins, which appreciated dramatically, became central to one of the largest money-laundering cases the DOJ has brought. [1][2]
Arrests and outcome
In February 2022 the DOJ announced the arrests of Ilya Lichtenstein and his wife Heather Morgan — a rapper who performed as "Razzlekhan" — and the seizure of about 94,000 BTC (then ~$3.6 billion) tied to the hack. Both pleaded guilty in 2023; Lichtenstein admitted carrying out the original hack. In November 2024 Lichtenstein was sentenced to five years in prison and Morgan to 18 months. [1][3]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
- Ilya LichtensteinHackerIndividualsThe hacker who breached Bitfinex in 2016 and fraudulently transferred 119,754 BTC. He pleaded guilty in 2023 to a money-laundering conspiracy and admitted carrying out the hack; he was sentenced in November 2024 to five years in prison.
- Heather MorganMoney laundererIndividualsAn entrepreneur and rapper known as 'Razzlekhan' who helped her husband Ilya Lichtenstein launder bitcoin stolen in the 2016 Bitfinex hack. She pleaded guilty in 2023 and was sentenced in November 2024 to 18 months in prison.
Sources (3)
See also
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)TokensA 2017–2018 ICO (BCT tokens, ~$30M) for a 'Blockchain Terminal' — a Bloomberg-style crypto trading terminal. The SEC and DOJ said convicted ex-hedge-funder Boaz Manor secretly ran it under a fake identity ('Shaun MacDonald'), using associate Edith Pardo as a front, and lied about the product's adoption.
- Crowd Machine (CMCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.