Netflix Hit With Cease and Desist Demands Over Bitfinex Bitcoin Heist Documentary

Attorneys for Heather “Razzlekhan” Morgan—the rapper and social media personality—issued cease-and-desist letters to streaming giant Netflix on Monday concerning the documentary “Biggest Heist Ever.”

Morgan is expected to report to federal prison on February 4 for her role in laundering funds tied to an infamous, multi-billion-dollar Bitcoin heist, upon which the documentary is based.

The letters shared with Decrypt cited defamation and a violation of California's two-party recording laws. The production company behind the documentary, Library Films, was also named.

Razzlekhan Drops New Music Video Ahead of Prison Time Over Bitcoin Heist

Rapper Heather “Razzlekhan” Morgan is back and dropping the first of two new singles ahead of serving 18 months in prison for her role in an infamous, multi-billion-dollar Bitcoin heist. The notorious entrepreneur and musician teased the new single and music video in recent days. Released Friday, Morgan described her new track “Razzlekhan vs. The United States” in a statement as a "misfits' anthem." Morgan further said that the song is based on her experiences during the case that stemmed from h...

Netflix did not immediately respond to Decrypt’s request for comment.

In addition to defamation claims, Morgan alleges Netflix and Library Films violated the privacy of wedding attendees by using footage from her ceremony with husband Ilya Lichtenstein without guest consent.

“We attended a wedding with no idea that we would later appear in a Netflix documentary,” Morgan’s attorney, Serena Wu, told Decrypt in an email. “It is crucial to protect and uphold the privacy rights of private citizens.”

The cease-and-desist letter demands that guests’ likenesses be immediately removed from the documentary, with no further use. Attorneys warn that failure to comply with these requests may result in legal action.

'Free Razzlekhan': Bitcoin Hacker Makes Plea From Prison for Rapper Wife

Ilya Lichtenstein, the hacker currently serving a five-year prison sentence for stealing billions of dollars worth of Bitcoin from crypto exchange Bitfinex, sent a message today from his jail cell: It was all his fault, and his wife shouldn’t be punished for his misdeeds. Lichtenstein’s wife, Heather Morgan—perhaps better known by her rapping moniker “Razzlekhan”—was herself sentenced to 18 months in a U.S. prison for helping her husband launder the stolen funds.  Last fall, Morgan admitted in f...

In a separate cease and desist letter, attorneys for Morgan point to several statements from the documentary that they say are false and defamatory, including claims that Morgan and Lichtenstein purchased stolen passports, debit cards, and other “identity documents” off the dark web.

These claims have no factual basis, the letter claimed, and perpetuate the lie that Ms. Morgan was a mastermind behind the “heist."

“Minimal due diligence would have revealed the falsity of your statements, including publicly available court filings that confirm that Ms. Morgan was not involved in the underlying hack," it added.

Morgan’s father-in-law, the cease-and-desist letter claimed, was also defamed by being called a hacker in the documentary.

“While this defamatory statement is not aimed at Ms. Morgan, it reinforces the documentary’s disregard for the truth and willingness to make defamatory accusations without any basis,” the letter said.

DOJ Says $9 Billion in Bitcoin Stolen in 2016 Hack Should Be Returned to Bitfinex

Billions of dollars of Bitcoin swiped from crypto exchange Bitfinex in a 2016 hack should be returned to the platform, the Department of Justice said. In a court documents filed Tuesday, the U.S. government said that the recovered coins from the theft should go back to the exchange as there are no "victims" in the case. Hackers took nearly 120,000 Bitcoin—today worth nearly $12 billion—and other digital tokens from the exchange in the hack. Over $9 billion worth of that has been recovered, and i...

“Ms. Morgan expressly reserves all of her legal and equitable rights and remedies, including the right to seek injunctive relief and recover monetary damages,” the letter added. “If you decide not to comply with the demands above, Ms. Morgan will take all steps necessary to protect her rights.”

Lichtenstein was convicted of hacking crypto exchange Bitfinex in 2016 and stealing nearly 120,000 Bitcoin, or more than $12 billion worth at the current price. In November, he was sentenced to five years in prison. Morgan, meanwhile, received an 18-month sentence for helping to launder stolen funds in the case.

Earlier this month, the self-styled rapper released the first of two new songs, “Razzlekhan vs. The United States,” which was followed by "Diplomat Pussy" last week.

Edited by Sebastian Sinclair and Andrew Hayward

Editor's note: This story was updated after publication to clarify a claim against Netflix and to remove references to California's two-party consent law, which wasn't mentioned in the final letter.