In court, the crypto couple will each be on their own. Heather Morgan, the comic rapper turned accused bitcoin bandit, has engaged her own counsel to defend her in the multibillion-dollar crypto money laundering case.
Morgan and her husband, Ilya Lichtenstein, may be in talks with prosecutors to seek a plea deal, prosecutors said just days ago.
Marshall Miller, a defense lawyer, submitted documents in court on Monday announcing that he would be taking over as Morgan’s legal representation. She had previously been represented by the same legal team as her spouse.
Separate attorneys are not uncommon for two defendants facing the same accusations, even if they are husband and wife. However, her abrupt shift in the midst of possible plea-bargain negotiations raises the likelihood that she will seek her own settlement to the matter.
Miller’s spokesperson declined to respond. Lichtenstein’s lawyer also declined to comment.
In connection with the 2016 breach of the crypto currency exchange Bitfinex, in which 120,000 bitcoin were stolen, the pair has been charged with conspiracy to launder money and defraud the United States government. The bitcoin was worth roughly $71 million at the time, but it is now worth $4.5 billion due to the crypto currency’s meteoric rise in value since then.
Investigators claimed to have recovered around $3.6 billion in stolen bitcoin from the couple’s wallets. Neither of them has been charged with the hacking.
Since many of the crypto accounts and wallets used to launder the money were linked to Lichtenstein, the evidence thus far shows that authorities have a stronger case against him. Prosecutors claim Morgan was involved in the money laundering, including using accounts linked to her company to launder some of the illicit bitcoin. While awaiting trial, Lichtenstein is being jailed without bail. Morgan has been confined to the couple’s Wall Street apartment after being freed on a $3 million bond.
Prosecutors and the couple’s lawyers agreed to renounce their right to a speedy trial on Monday. Prosecutors are required by federal law to bring defendants in felony criminal cases to trial within 70 days of their indictment.
