When the “Bitfinex Bandit” showed up at the Nashville venue, some people panicked

Compiled by: Azuma, Odaily Planet Daily

Editor’s note:

On August 2, 2016, nearly 120,000 Bitcoins were stolen from Bitfinex, an old exchange. This is also the largest hacking incident in the history of cryptocurrency. one.

On February 8, 2022, nearly six years later, the U.S. Department of Justice announced that it had cracked the case. It not only seized more than 94,000 Bitcoins (thousands more were later recovered), but also arrested two suspects involved in the case. Ilya Lichtenstein and Heather Morgan.

To this day, the nearly 100,000 Bitcoins seized from this "couple thieves" still account for the main source of the U.S. government's Bitcoin holdings. Bitfinex is also trying to recover this batch of funds, and it is expected that it will still require a lengthy process. Legal level to determine how to dispose of this batch of Bitcoins.

On the other hand, the suspect involved in the case is not under restricted movement as generally believed by the community. Morgan has been spotted attending major cryptocurrency-related events many times, including the just-concluded Nashville Bitcoin Conference.

The following content is Cointelegraph’s report and analysis of Morgan’s unexpected appearance.

"Legendary Thief" Appears in Nashville

The "old people" in the industry may be familiar with Heather Morgan (also known as Razzlekhan). This self-proclaimed social engineering expert and rapper hacker once revolutionized the entire encryption industry Headlines in the currency industry.

Morgan was involved in one of the largest cyber thefts in history, hacking into Bitfinex in 2016 and stealing 120,000 Bitcoins, worth a total of more than $4.5 billion based on the price of the currency at the time of her arrest.

Many people believe that Morgan has been in custody since his arrest, but this is not the case. Morgan has appeared many times at some cryptocurrency-themed conferences, including the just-concluded Nashville Bitcoin 2024 conference. was discovered, which aroused curiosity and suspicion among the attendees.

Note: Morgan was photographed at the venue (the thin woman on the far left).

On August 3, 2023, Morgan made it clear when she entered her guilty plea that she could face up to five years in prison and a $250,000 fine, and since then she has been awaiting her scheduled trial date of November 8, 2024 judgment.

Morgan’s husband and accomplice Ilya Lichtenstein is currently under house arrest while Morgan is out on bail.

According to Judge Howell, Lichtenstein played a more significant role in orchestrating the Bitfinex theft than Morgan did in the hack, necessitating stricter restrictions on Lichtenstein. Carol Goforth, a law professor at the University of Arkansas School of Law, also noted that Lichtenstein's ties to Russia also heightened concerns that he might abscond.

Analysis of potential reasons for Morgan’s attendance

If a person is about to face years of imprisonment and huge fines, why would she frequently attend Bitcoin-related events?

Bitcoin developer and co-founder of Bitcoin custody service company Casa, Jameson Lopp, believes that Morgan’s behavior is very suspicious and suggested that conference organizers treat Morgan as a potential threat and refuse her to continue to participate in the conference.

Lopp’s concerns highlight widespread unease in the community about Morgan’s intentions and the potential risks he may pose.

Loop told Cointelegraph that he believes there are two possible reasons for Morgan’s participation.

The relatively benign possibility is that she is looking for consulting opportunities to pay the government's $250,000 fine - it is reported that Morgan introduced himself at the event as a "Web3 consultant".

However, a more malicious possibility is that Morgan is trying to reduce his own sentence by gathering intelligence for the government.

As for whether Morgan has taken orders from the U.S. government, Lopp believes few people would choose confrontation over cooperation when faced with incarceration.

Given Morgan’s self-professed expertise in social engineering, Lopp believes she is likely using those skills to act on behalf of the government. This possibility further increased the alarm in the crypto community, fueling the suspicion surrounding Morgan.

Note: Morgan gave a talk in 2019 on how to use social engineering to achieve goals.

Does restricting Morgan’s entry conflict with Bitcoin’s “inclusive” values?

LoppThe call to exclude Morgan from participating in the conference also encountered some opposition within the cryptocurrency community. Opponents believe that such a ban is contrary to the "tolerance" and "openness" spirit inherent in Bitcoin culture.

This contradiction has sparked a wider debate within the community about how to balance security concerns with value principles.

Lopp said in this regard that he also did not want to exclude Morgan because of her belief in Bitcoin, he just believed: "She should be refused to attend the conference because she is a known threat...Only a fool would prey on Lopp also disagreed with the imposition of a blanket ban on all convicted cryptocurrency criminals, arguing: "Crime and moral imbalance are not completely synchronized, like Sam Bankman-" People like Fried and Alex Mashinsky did defraud countless customers and caused widespread harm, and with people like Roger Ver and Erik Voorhees, you might have to use some brainpower to say they did harm some people,"

Lopp opined. Communities should choose to protect themselves from bad actors. By excluding those with known harmful intentions or criminal backgrounds from attending conferences, the cryptocurrency industry can better maintain its integrity and security, ensuring events are accessible to all attendees. Said it was safe and effective.

“Our industry is rooted in the philosophy of permissionless, consensual interactions. One of the most effective self-protection measures we can implement is to exclude known bad actors. If you are not a trustworthy individual , you don’t deserve to benefit from networking opportunities such as conferences.”

Morgan did not respond to a request for comment as of publication.

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