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Accused bitcoin launderer Heather Morgan in talks with prosecutors to avoid trial

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Heather Morgan and Ilya Lichtenstein booking photos

Courtesy: Alexandria Adult Detention Center.

In court, Monday’s federal prosecutor claimed that lawyers and he were for the prosecution of a woman accused of trying to launder $4.5 billion in stolen bitcoin with her husbandThey are discussing possible resolutions to her criminal case that will not involve going to trial.

This disclosure strongly indicates that Heather “Razzlekhan”, Morgan is the one who made it public. who only was arrested with her husband Ilya “Dutch” Lichtenstein on Feb. 8,In a case where the Justice Department already took more than $3.6 million in bitcoin, a plea bargain could be made.

It was the most significant financial seizure in departmental history.

Morgan, 31, a rapper and entrepreneur, was released on bail for $3 million. She appeared by phone from New York City to appear in court in Washington, D.C. on Monday.

The hearing was not attended by her husband, a 34-year old man. He was refused bail and is currently in prison.

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Morgan informed Judge Robin Meriweather early in the proceeding that she had recently been diagnosed as having Covid-19.

Morgan was informed again at the hearing of the nature the charges she faces. She and Lichtenstein are accused of trying to hide the source of the nearly 120,000 bitcoin stolen in the 2016 hackBitfinex, a cryptocurrency

Prosecutors charged the couple with engaging in complex transactions that were meant to wash the stolen bitcoin.

The hacking is being investigated by neither of the suspects. The stolen bitcoin had a value of $70 million at the time. However, it has appreciated significantly in its worth over the years.

Meriweather scheduled Morgan’s March 25 court date at the hearing.

Christopher Brown, an assistant U.S. attorney and cybercrimes prosecutor asked Meriweather for permission to temporarily suspend the speedy trial clock that Morgan was on until then. The clock stipulates that prosecutors must try federal felonies criminal defendants within 70 days from the date of an indictment.

Brown stated to the judge two reasons why he suspended the clock.

Brown stated that the first concern was how much evidence will be presented to defense attorneys in this case. He said it is likely to be complex and extensive.

Prosecutor stated that the evidence would contain thousands of financial transactions, including cryptocurrency and U.S. dollar over a 5-year period. This was across multiple financial accounts held by defendants.

Brown noted also that more than 50 devices belonging to Morgan and Lichtenstein were seized by authorities.

Brown stated that the second reason for suspending the clock was to allow parties to have discussions about a resolution to this case without the need to go to trial.

Morgan’s lawyers didn’t object to Brown’s suspension of the clock or Brown’s description about their discussions.

Court filings also contained the following statement by the prosecutors: “The Government, defense counsel and I are in discussion about a possible disposition of that matter.”

Gerald Lefcourt of New York was a former president of National Association of Criminal Lawyers. When Brown read the language, Lefcourt said that they were plea bargaining.

Lefcourt said that this is typical language used by the government or defense to inform the judge they are talking about a plea deal for defendants.

Lefcourt stated that it was not common for defense attorneys and prosecutors to begin plea negotiations so quickly after an arrest. This appears to have been the case with Morgan.

“But you know that there are many instances where the government surprises learns a lot before filing” for a criminal matter, and “bright defense lawyers see what the writing is on the wall.”

CNBC’s messages seeking comments from Morgan’s attorney Samson Enzer were not promptly returned by Enzer.

The U.S. Attorney’s Office for the District of Columbia spokesperson declined to comment.

Netflix announced earlier this month that it had commissioned a docuseriesAbout the case.

NetflixChris Smith will direct the series about the couple. He also helmed “FYRE” on Netflix, which was about the fraudulent Fyre Festival. Smith is also executive producer of “Tiger King,” a Covid pandemic hit.

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