When the Bitfinex Thief showed up at the Nashville conference, some people panicked

Original article | Cointelegraph

Compiled by Odaily Planet Daily ( @OdailyChina )

Translated by Azuma ( @azuma_eth )

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On August 2, 2016, nearly 120,000 bitcoins were stolen from the established exchange Bitfinex, which was one of the largest hacking incidents in the history of cryptocurrency.

On February 8, 2022, nearly six years later, the U.S. Department of Justđá announced that it had cracked the case, not only seizing more than 94,000 bitcoins (and subsequently recovering thousands more), but also arresting two suspects involved in the case, Ilya Lichtenstein and Heather Morgan. (For details, see How did law enforcement agencies track down the 94,000 bitcoins stolen from Bitfinex? )

To this day, the nearly 100,000 bitcoins seized from the husband and wife thieves still account for the majority of the U.S. governments bitcoin holdings. Bitfinex is also trying to recover the funds, and it is expected that a lengthy legal process will be required to determine how to deal with the bitcoins.

On the other hand, the suspect involved in the case is not under restriction of movement as the community generally believes. Morgan has been spotted attending major cryptocurrency-related events many times, including the Nashville Bitcoin Conference that just ended.

The following content is Cointelegraph’s report and analysis on Morgan’s unexpected appearance, compiled by Odaily Planet Daily.

The legendary thief shows up in Nashville

Industry veterans may be familiar with Heather Morgan, also known as Razzlekhan, a hacker who claims to be a social engineering expert and rapper who once made headlines in the entire cryptocurrency industry.

Morgan was involved in one of the largest cyber heists in history, hacking into Bitfinex in 2016 and stealing 120,000 bitcoins, worth more than $4.5 billion 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 at several cryptocurrency-themed conferences, including the Bitcoin 2024 conference in Nashville, which just concluded, sparking curiosity and suspicion among attendees.

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

Morgan pleaded guilty on August 3, 2023, knowing full well that she could face up to five years in prison and a $250,000 fine, and since then she has been awaiting sentencing, which is scheduled for November 8, 2024.

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

According to Judge Howell, Lichtenstein played a more important role than Morgan in planning the Bitfinex theft than in the hacking, so stricter restrictions need to be imposed on Lichtenstein. In addition, Carol Goforth, a law professor at the University of Arkansas School of Law, also mentioned that Lichtenstein’s ties to Russia also increased concerns that he might abscond.

Analysis of potential reasons for Morgans attendance

If a person is about to face years in prison and a huge fine, why would she still frequently participate in Bitcoin-related activities?

Jameson Lopp, a bitcoin developer and co-founder of bitcoin custody service Casa, believes Morgans behavior is very suspicious and suggests that conference organizers treat Morgan as a potential threat and refuse to allow her to continue attending the conference.

Lopps concerns highlight widespread community unease about Morgans intentions and the potential risks it could pose.

Loop told Cointelegraph that he believes Morgan may have attended the meeting for two reasons.

A more benign possibility is that she is looking for consulting opportunities to pay the government’s $250,000 fine – Morgan reportedly introduced herself as a Web3 consultant at the event.

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

As for whether Morgan has complied with the U.S. government, Lopp believes that few people would choose to fight rather than cooperate when faced with imprisonment.

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

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

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

Lopps call to exclude Morgan from the conference also encountered some opposition within the cryptocurrency community. Opponents believe that such a ban is contrary to the inclusive and open spirit inherent in Bitcoin culture.

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

Lopp said he did not want to exclude Morgan because of her belief in Bitcoin, but he just thought: She should be denied access because she is a known threat… Only a fool would bring a predator into an event full of potential targets.

Lopp also disagrees with a blanket ban on all convicted cryptocurrency criminals, arguing that “crime and moral imbalance are not completely in sync. People like Sam Bankman-Fried and Alex Mashinsky did defraud countless customers and caused widespread harm, while with people like Roger Ver and Erik Voorhees, you might need to use some brains to say that they did harm some people.”

Lopp believes that the community should choose to protect itself from bad actors, and by refusing to allow those with known harmful intent or criminal backgrounds to attend conferences, the cryptocurrency industry can better maintain its integrity and security, ensuring that events are safe and productive for all attendees.

“Our industry is rooted in the idea of permissionless, voluntary interaction. 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 do not deserve to benefit from social opportunities such as conferences.”

Morgan had not responded to a request for comment as of press time.

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