In what looks like a Hollywood movie, the United States Department of Justice (DOJ) made the biggest cryptocurrency seize in history recovering $3.6 billion. Crypto can be known to have a dark side. For example, it is linked to environmental impact through high energy consumption. It is also tied to criminal activities.
The nature of crypto, open 24/7, decentralized, and unregulated, is a two-edged sword. On the one hand, it allows users worldwide to access a “more free” economy. On the other, it opens doors for the underworld to execute all types of shady transactions. As a result, crypto has been linked to terrorism, drug cartels, hackers, ransomware, money laundering and all kinds of scams.
In the spotlight for the new crypto case made by the DOJ, a New York couple, Heather Morgan and her husband, Ilya Lichtenstein, have been charged for allegedly conspiring to launder $3.6 billion in bitcoins. The DOJ says the money is from the 2016 Bitfinex heist. The case gained media recognition not only for the amount stolen. The accused, Heather Morgan, calls herself “The Crocodile of Wall Street,” is a regular contributor for Inc. magazine and Forbes, and a rapper with strong views on the world.
Pretty Tied Up: A Strong Message From The DOJ
Morgan, AKA “The Crocodile of Wall Street,” AKA “Razzlekhan” became world infamous just minutes after the DOJ communicated the bust. Her online rap site, Razzlekhan, still open, streams cringy rap music with a dark tone, mixing up a “bad attitude” with finances. Morgan also ironically wrote about cybercriminal activities for Forbes and Inc. Her Forbes author profile is also still active and says, “When she’s not reverse-engineering black markets to think of better ways to combat fraud and cybercrime, she enjoys rapping and designing streetwear fashion.” She calls her music art that “often resembles something in between an acid trip and a delightful nightmare,” and that could not be more true for her now.
The DOJ accused Morgan and her husband Lichtenstein of trying to cover their tracks by laundering stolen funds through “a labyrinth of cryptocurrency transactions.” Still, no one knows who stole the 119,756 Bitcoins back in 2016. The DOJ says they have proof that 119,754 Bitcoins were transferred to a wallet allegedly controlled by Lichtenstein. The stolen Bitcoins were worth $71 million in 2016. Today they would be worth more than $ 5.3 billion.
While Morgan is “pretty tied up” in this case, most of the DOJ accusations fall on her husband, Lichtenstein. The DOJ is using this case to send out a clear message. “Today, federal law enforcement demonstrates once again that we can follow the money through the blockchain, and that we will not allow cryptocurrency to be a safe haven for money laundering or a zone of lawlessness within our financial system,” Assistant Attorney General Kenneth Polite Jr. of the DOJ, said. DOJ has only seized 94,636 Bitcoin from Lichtenstein’s wallet. The rest of the Bitfinex crypto heist funds are said to be mysteriously inaccessible for law enforcement due to failures to decrypt digital wallet files.
