Bitfinex hacker showed up at Bitcoin conference, "scout out the venue" or "looking for a job"?

Original title: Bitfinex hacker Heather Morgan spotted at Bitcoin Conference 2024

Original author: Daniel Ramirez-Escudero, Cointelegraph

Original translation: Azuma, Odaily Planet Daily

Editor's note: On August 2, 2016, nearly 120,000 bitcoins were stolen from the old exchange Bitfinex, which is also one of the largest hacking incidents in the history of cryptocurrency.

On February 8, 2022, nearly six years later, the US Department of Justice announced that it had cracked the case, not only seizing more than 94,000 bitcoins (and subsequently recovering thousands of them), but also arresting two suspects involved in the case, Ilya Lichtenstein and Heather Morgan.

To this day, the nearly 100,000 bitcoins seized from the "husband and wife thieves" still account for the majority of the U.S. government's 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 suspects involved in the case are not under restrictions as the community generally believes. Morgan has been spotted attending major cryptocurrency-related events many times, including the just-concluded Nashville Bitcoin Conference.

The following is Cointelegraph's report and analysis of Morgan's unexpected appearance, compiled by Odaily Planet Daily.

"Legendary Thief" Appears in Nashville

The "old hands" in the industry 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, which was worth more than $4.5 billion at the price of the currency when she was arrested.

Many people believe that Morgan has been in custody since her arrest, but this is not the case. Morgan has appeared in several cryptocurrency conferences, including the Bitcoin 2024 conference in Nashville, which just ended, which has aroused the curiosity and suspicion of the participants.

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

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

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 important role in planning the Bitfinex theft than Morgan did in the hack, and therefore a stricter restriction on Lichtenstein was needed. Carol Goforth, a law professor at the University of Arkansas School of Law, also mentioned that Lichtenstein’s ties to Russia also heightened concerns that he might abscond.

Analysis of potential reasons for Morgan’s attendance

Why would a person frequently attend Bitcoin-related events if she was about to face years in prison and a huge fine?

Jameson Lopp, a Bitcoin developer and co-founder of Bitcoin custody service Casa, considered Morgan’s behavior very suspicious and suggested that conference organizers treat Morgan as a potential threat and refuse her continued participation.

Lopp’s concerns highlight the community’s general uneasiness about Morgan’s intentions and the potential risks he may pose.

Loop told Cointelegraph that he believes there are two possible reasons why Morgan may have attended the conference.

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

However, a relatively malicious possibility is that Morgan is trying to reduce her sentence by collecting intelligence for the government.

As for whether Morgan has obeyed the US government, Lopp believes that few people will choose to confront rather than cooperate when facing 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 the alertness of the crypto community and intensified 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?

Lopp's call to reject Morgan's participation in the conference has 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 security concerns with value principles.

Lopp said that he did not want to exclude Morgan because of her belief in Bitcoin. He just thought: "She should be denied participation because she is a well-known threat... Only a fool would introduce a predator into an event full of potential targets."

Lopp also disagreed with the blanket ban on all convicted cryptocurrency criminals. He argued: "Crime and moral imbalance are not completely synchronized. People like Sam Bankman-Fried and Alex Mashinsky did deceive countless customers and caused widespread harm. For people like Roger Ver and Erik Voorhees, you may need to use your brain to say that they did hurt some people."

Lopp believes that the community should choose to protect itself from bad actors. By refusing to participate in meetings those who are known to have harmful intentions or criminal backgrounds, the cryptocurrency industry can better maintain its integrity and security and ensure that the event is safe and productive for all participants.

“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 did not respond to a request for comment as of press time.

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