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Forget Netflix and chill, we're more into Netflix and crypto. Fortunately for us, the world's leading streaming service has delivered yet another intriguing documentary on the world's leading cryptocurrency.
From Trust No One: The Hunt For The Bitcoin King to Bitconned to Crypto Boy, Netflix has broadcasted its fair share of crypto-themed content but its latest documentary might be its most bizarre.
Focusing on Bitfinex's $72 million hack and the subsequent arrest of unassuming wanna-be rapper, Razzlekhan, Biggest Heist Ever uncovers how the most unlikely of suspects walked away with $4.5 billion of stolen Bitcoin.
Husband and wife Heather "Razzlekhan" Morgan and Ilya Lichtenstein ultimately pleaded guilty to attempting to launder $4.5 billion of stolen Bitcoin in a 2016 hack ($71 million at the time). Lichtenstein also pleaded to a count of conspiracy to defraud the United States. Last month, Lichenstein was sentenced to five years in prison while Morgan was given 18 months behind bars.
Like good crypto fanboys and self-diagnosed Netflix bingers, we took the liberty of watching the documentary so you don't have to. Here's everything we learned:
Rich Dad's Aren't as Good as Hacker Dads
It's nice to be born into a rich family but it's even better to be born into a hacker family. Ilya Lichtenstein, Razzlekhan's better half, has been sentenced to five years for his part in the Bitfinex robbery but Biggest Heist Ever suggests that his influence stemmed from his father, Eugene Lichtenstein.
Lichtenstein Senior was credited for hacking into the First National Bank of Indiana as well as a Secret Service computer. However, Lichtenstein agreed to cooperate with the Secret Service and was not charged with any wrongdoing.
My statement 🧞♀️#razzlekhan pic.twitter.com/janr9RD1Q2
— Heather "Razzlekhan" Morgan (@HeatherReyhan) November 18, 2024
According to the documentary, Ilya's capabilities to hack Bitfinex might have been inherited from his father. As the BBC reports, Lichtenstein used "advanced hacking tools and techniques" - abilities perhaps only learned from Daddy.
Law Enforcement Are More Patient Than Criminals
It took five years for authorities to connect Morgan and Lichtenstein to the stolen funds, showing how patient and thorough law enforcement must be when tracking crypto-related crimes.
TRM Labs Global Head of Policy, Ari Redbord, and TRM Labs Head of Global Investigations, Chris Janczewski were both featured in the documentary, detailing how the firm helped law enforcement trace down Morgan and Lichtenstein.
Speaking to Blockhead about why they were keen to appear in the documentary, Rebdord said, “This was an opportunity for me to help tell the story - on a big stage - of the agents, investigators, and prosecutors that tracked this couple through the years and across blockchains."
"While there is a lot of focus on the colorful couple that perpetrated the crime, I wanted to shine a light on the agents who brought them to justice and the victims from whom they stole.”
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Describing the story as the "biggest heist ever and the largest seizure in history," Redbord added that it was even more significant for the "amazing investigation that ensued".
Janczewski emphasised that working with "the most dedicated professionals in government service" helped to achieve success.
"Without the collaboration between agencies, the recovery of the funds would not have been possible," he said. "This story is significant because it underscores the ever-evolving nature of crime and the resilience of those who investigate it. The story isn’t about rap videos, it’s about seeking justice and making victims whole."
Don't Use Gift Cards to Launder Crypto
Considering how sophisticated Lichenstein's hack was, his approach to money laundering could be described as the complete opposite. According to the documentary, a major red flag that accelerated the investigation was the couple's decision to give away expensive gifts at their wedding.
From iPhones to Playstations to gift cards, guests were treated to a variety of prizes. The couple's fatal error was purchasing these gift cards with Bitcoin.
"The gift card thing was so dumb," crypto influencer Rachel Siegel says in the documentary. "This girl was sending fragments of $4.5 billion and buying gift cards."
Rebdord explained that the desperation was growing. "At this point they've been holding on to the stolen Bitcoin for about five years."
The gift cards were ultimately traced back to Morgan and Lichenstein.
Don't Label Your Burner Phones "Burner Phones"
When authorities first raided Morgan and Lichenstein's New York apartment, they were unsuccessful in finding the private keys. Instead, officers stumbled upon items that "look like they came from a bad spy novel," as producer Nick Bilton described them.
Among these items was a bag labelled "Burner Phones," which Janczewski said was a first and a "new one" for the department.
Although as Bilton explains, "Just having a burner phone" and a variety of foreign currencies "did not mean they had broken the law." Nonetheless, we'd seriously advise labelling your suspicious items.
Keep Rapping, No Matter What
Razzlekhan's love for rapping holds no bounds. Just ten days after the raid on their New York home, Razzlekhan resurfaced online rapping about her AirPods, as if nothing had happened.
She would then continue to release a series of nonsense videos and social media posts while investigators dug deeper into her.
"How do the feds show up at your front door, raid your apartment, take all your electronics, which could tie you to billions of dollars worth of stolen crypto, and you still go out for several weeks and make these crazy videos?" Bilton questions.
In case you thought that Razzlekhan was making these videos to mask what was happening to her followers, the convicted rapper released a "Jail Song Written From Solitary Confinement" just days ago, dedicated to Lichenstein.
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In this episode, Takatoshi Shibayama sits down with Jason Choi, general partner at crypto prop shop Tangent, for a candid exploration of crypto markets. Choi discusses meme coin supercycles, navigating macroeconomic headwinds, and the evolution of project evaluation from speculative hype to real-world traction.
Previous episodes of Blockcast can be found on Podpage, with guests like Peter Hui (Moongate), Luca Prosperi (M^0), Charles Hoskinson (Cardano), Aneirin Flynn (Failsafe), and Yat Siu (Animoca Brands) on our most recent shows.
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