Bitfinex Money Launderer Razzlekhan Celebrates Early Prison Release with Shoutout to Trump

Heather Morgan, known in crypto as Razzlekhan, emerged from federal prison this week after serving less than a year of her 18-month sentence for money laundering tied to the infamous 2016 Bitfinex hack. The rapper and self-styled performance artist wasted no time in sharing her freedom on social media, posting a video from her bathtub where she gave a playful nod to President Donald Trump for what she called an early gift. Her release came quietly compared to the splashier clemency announcements that have marked the president's recent actions in the crypto space.

In the clip, Morgan lounged in bubbly water and raised a glass to "Papa Trump" for shortening her time behind bars. She had already completed most of her term at a low-security facility in California, where good behavior often leads to reduced stays. Yet her enthusiastic thanks sparked immediate buzz among followers, who linked it to the wave of high-profile crypto pardons rolling out from the White House.

This timing aligned with other notable releases, including last week's pardon of Changpeng Zhao, or CZ Binance, whose four-month sentence for anti-money-laundering violations ended abruptly. People have also pointed to clemencies for Silk Road creator Ross Ulbricht and the founders of BitMEX, as signs of a broader shift in federal attitudes toward digital assets. Morgan's post-release flurry amplified the speculation, with one message reading, "Thanks to @POTUS - Biden’s war on crypto is officially over. Guess it’s crypto pardon season."

Unpacking the Bitfinex Hack Legacy

The story traces back to August 2016, when hackers breached Bitfinex's systems and siphoned away nearly 120,000 Bitcoin from customer accounts. At the time, those coins were valued at around $72 million, a fraction of their current worth exceeding $13.8 billion amid bitcoin's surge past $115,000 per token. Federal investigators later connected the theft to Morgan's husband, Ilya Lichtenstein, who admitted to the breach and pleaded guilty to conspiracy charges.

Lichtenstein received a five-year prison term in late 2024, with authorities recovering about 95,000 of the stolen Bitcoins through a complex trail of wallet movements and exchanges. Morgan, meanwhile, faced charges for her role in laundering portions of the funds through art purchases, cash withdrawals, and even fake business dealings disguised as her rap career promotions. Prosecutors highlighted how the couple used sophisticated techniques to tumble and obscure the cryptocurrency, turning illicit gains into everyday spending.

Her sentencing in November 2024 drew attention for its relative leniency, reflecting her cooperation with authorities and lack of prior record. The 18-month term was set to wrap up in January 2026, but standard Bureau of Prisons policies for well-behaved inmates allowed for an earlier exit to a halfway house or supervised release. This routine process, rather than presidential pardon, explained her sudden availability, according to a White House spokesperson who addressed the rumors head-on.

Despite the clarification, Morgan's social media savvy kept the narrative alive. She shared glimpses of her post-prison life. Her husband's ongoing incarceration adds a poignant layer, as the couple navigates separate paths following their joint downfall.