Heather Morgan, sometimes known by her alter ego “Razzlekhan” — a self-styled social engineer and flamboyant rapper — made headlines after being arrested for and subsequently pleading guilty to one of the most audacious cyber heists in history, the 2016 Bitfinex hack of 120,000 Bitcoin, worth $4.5 billion at the time of her arrest.
Contrary to popular belief that she was behind bars, Morgan reportedly appeared at the Bitcoin Conference 2024 in Nashville, sparking curiosity and controversy among attendees. Her presence at several crypto conferences has left the crypto community buzzing with speculation.
When Morgan pleaded guilty on Aug. 3, 2023, she knew she could face up to five years in prison and receive a fine of $250.000. Since then, she’s been awaiting sentencing, scheduled for Nov. 8, 2024.
Morgan’s husband and partner in crime, Ilya Lichtenstein, is currently under house arrest. Morgan, on the other hand, remains free on bail.
According to Judge Howell, Lichtenstein played a far more significant role in planning the Bitfinex hack than his wife, which warranted stricter measures. Additionally, his connections to Russia heightened concerns about him being a flight risk, as Carol Goforth, a law professor at the University of Arkansas School of Law, explained to Cointelegraph.
Why is Morgan attending Bitcoin events?
If an individual is about to be sentenced to jail for several years and has impending administrative fees, such as a $250,000 fine, why would they be attending Bitcoin (BTC) events?
Jameson Lopp, a Bitcoin developer and co-founder of Bitcoin custody firm Casa, found her presence extremely suspicious. He advised Bitcoin event organizers to regard her as a threat actor and deny her entry.
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Lopp’s concerns highlight the broader unease within the crypto community regarding Morgan’s intentions and the potential risks she might pose at these gatherings.
Lopp told Cointelegraph that he believes there could be two explanations for her attendance at these events.
A “charitable explanation would be that she’s seeking consulting gigs in order to pay the $250,000 fine she owes to the government.” She has reportedly introduced herself as a “Web3 adviser” at Bitcoin conferences.
However, an “adversarial explanation” would be that she’s “seeking to reduce her sentence by collecting intel on behalf of the government.”
As for whether Morgan may have become an asset to the United States government, Lopp argued that few individuals are so ideologically opposed to the government that they would choose extra prison time over cooperation.
Considering Morgan’s self-proclaimed expertise in social engineering, Lopp said it’s conceivable she might be using those skills on behalf of the state. This possibility further fuels the crypto community’s wariness, adding to the intrigue and suspicion surrounding her activities.
Blacklisting conflicts with Bitcoin’s core value of inclusivity
Lopp’s call to deny Morgan entry to Bitcoin conferences has met resistance from within the crypto community. Critics argued that such a ban contradicts Bitcoin culture’s inherent inclusivity and open ethos.
This tension underscores a broader debate within the community about balancing security concerns with the principles of openness and inclusivity that Bitcoin advocates champion.
Lopp said he doesn’t want to exclude her because of her beliefs. He believes “she should be excluded because she is a KNOWN THREAT.” He emphasized, “Only a fool invites known predators into events full of potential targets.”
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Neither does Lopp believe in a blanket ban on all convicted crypto criminals from Bitcoin conferences. He argued that “criminality and morality do not always align,” distinguishing individuals like Sam Bankman-Fried and Alex Mashinsky, who “defrauded countless customers and caused widespread harm,” and others like Roger Ver and Erik Voorhees, where “it would require mental gymnastics to claim that they actually harmed anyone.”
Lopp believes the community should be able to safeguard itself from bad actors. He said that by excluding those with known harmful intentions or criminal backgrounds, the crypto industry can better preserve its integrity and security, ensuring that events and interactions remain safe and productive for all participants.
“Our industry is rooted in the ideals of permissionless, voluntary interaction. One of the strongest forms of self-policing that we can perform is to exclude known bad actors from our midst. If you prove that you are not a trustworthy individual, you do not deserve to benefit from networking opportunities such as conferences.“
Morgan did not respond to Cointelegraph’s request for comment by publishing time.
Update (July 29, 4:25 pm UTC): This article has been updated to correct the date on which Morgan pleaded guilty, which was Aug. 3, 2023.