U.S. prosecutors are seeking an 18-month prison sentence for Heather Morgan due to her involvement in laundering funds stolen during the 2016 Bitfinex hack.

Heather Morgan's Role in the Bitfinex Case

Heather Morgan is a key player in the case of laundering 120,000 Bitcoins stolen from the Bitfinex exchange. In October 2023, federal prosecutors suggested a more lenient sentence for her after she provided significant assistance in the proceedings involving her and her husband, Ilya Lichtenstein.

Trial and Plea Agreement

In August 2023, Morgan pled guilty to charges of money laundering and fraud. Her husband, Ilya Lichtenstein, also admitted to orchestrating the Bitfinex hack and pled guilty. Prosecutors claim that Morgan was unaware of her husband's involvement in the hack until 2020.

Consequences and Measures

In addition to the prison sentence, prosecutors are seeking an order for Morgan to return the cryptocurrency assets previously seized by the government. Authorities also state that Morgan used part of the proceeds to purchase gold coins.

Heather Morgan's sentencing and her involvement in laundering significant amounts of cryptocurrency raise important questions about the security of crypto exchanges and the responsibility for safeguarding assets.