2024

Bitcoin

when

Heather Morgan, sometimes known by her alter ego Razzlekhan, a self-styled social engineer and flamboyant rapper, made headlines after<a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.257739/gov.uscourts.dcd.257739.101.0.pdf" target="_blank" rel="noopener noreferrer nofollow"> pleading</a> guilty to one of the most<a href="https://cointelegraph.com/news/four-year-anniversary-of-bitfinex-hack-and-12m-of-stolen-btc-moved" rel="noopener noreferrer nofollow"> audacious cyber heists in history</a>; the 2016 Bitfinex hack of 120,000 BTC, worth $4.5 billion at her time of<a href="https://www.justice.gov/opa/pr/two-arrested-alleged-conspiracy-launder-45-billion-stolen-cryptocurrency" target="_blank" rel="noopener noreferrer nofollow"> arrest</a>.
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.
<figure data-ct-non-breakable="true"><img src="https://s3.cointelegraph.com/uploads/2024-07/8430b1f7-4427-4760-825a-51394800cf90.png" alt="Bitfinex hacker Heather Morgan spotted at Bitcoin Conference 2024">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/lopp/status/1817546528321372337" target="_blank" rel="noopener noreferrer nofollow">Jameson Lopp</a>
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Once Morgan pleaded guilty on July 13, 2024, she knew she could face up to five years in prison and receive a fine of $250.000. Since then, she’s been awaiting her sentence scheduled on 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.&nbsp;
According to Judge Howell, Lichtenstein <a href="https://www.nytimes.com/2022/02/14/us/politics/ilya-lichtenstein-heather-morgan-bitcoin-bail.html" target="_blank" rel="noopener noreferrer nofollow">played</a> 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 University of Arkansas School of Law professor, explained to Cointelegraph.
<h2 data-ct-non-breakable="true" id="why-is-morgan-attending-bitcoin-events">Why is Morgan attending Bitcoin events?</h2>
If an individual is about to be sentenced to jail for several years and has impending administrative fees, such as a $250,000 fine, what would they be attending Bitcoin events?
Jameson Lopp, Bitcoin developer and co-founder of Bitcoin custody firm Casa, found her presence extremely suspicious. He has 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 Bitcoin 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.
<figure data-ct-non-breakable="true"><img src="https://s3.cointelegraph.com/uploads/2024-07/5ec18cc9-1000-4dbb-ae1a-10d6ca777fe1.jpg" alt="Bitfinex hacker Heather Morgan spotted at Bitcoin Conference 2024">
 <figcaption style="text-align: center;">Morgan (left) at a Bitcoin conference. Source:<a href="https://x.com/CryptoPhD/status/1817672793321844943" target="_blank" rel="noopener noreferrer nofollow"> Demelza Hays</a>
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However, he did point out that 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 US government, Lopp points out 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.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-07/450d20b3-6f41-4f20-8fca-0f83a0b9bf39.png" alt="Bitfinex hacker Heather Morgan spotted at Bitcoin Conference 2024">
 <figcaption style="text-align: center;">Image from Morgan’s presentation “How to Social Engineer Your Way Into Anything” at NYC Salon. Source: <a href="https://www.youtube.com/watch?v=JmahJCWJ8iM" target="_blank" rel="noopener noreferrer nofollow">YouTube</a>
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<h2 data-ct-non-breakable="true" id="blacklisting-conflicts-with-bitcoin-s-core-value-of-inclusivity">Blacklisting conflicts with Bitcoin's core value of inclusivity</h2>
Lopp’s call to deny Morgan entry to Bitcoin conferences has met resistance from within the crypto community. Critics<a href="https://x.com/AdrianoFeria/status/1817549727346426244" target="_blank" rel="noopener noreferrer nofollow"> argued</a> that such a ban contradicts Bitcoin culture’s inherent inclusivity and open ethos.&nbsp;
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. By excluding those with known harmful intentions or criminal backgrounds, he said that the crypto industry can better preserve its integrity and security, ensuring that events and interactions remain safe and productive for all participants.
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 “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.“
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Morgan did not respond to Cointelegraph’s request for comment by publishing time.

Bitfinex hacker Heather Morgan spotted at Bitcoin Conference 2024

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Cointelegraph

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