According to a source familiar with the case, a couple accused of laundering funds from Bitfinex during the 2016 hack has agreed to a plea agreement with U.S. Authorities.

Heather “Razzlekhan”, Morgan, and Ilya, Lichtenstein were married New Yorkers arrested in February 2022. They faced accusations of money laundering and conspiring to defraud U.S. According to a court document, the U.S. attorney ordered the couple forfeit billions in bitcoin, ether and stablecoins, as well as cash from their accounts.

A judge in February 2022 granted bail to Morgan, but not to Lichtenstein. The defense claimed that Morgan’s case was weaker, and the only evidence was that she “allegedly” received funds tied to the crime. Her health issues also made her release necessary.

The case would be closed with a plea agreement, which would end one of the most dramatic criminal trials that have ever occurred in cryptocurrency. This field has had more than its fair share of scandals. The mystery of who was behind the hack of Bitfinex remains unsolved. At the time it was one of the biggest heists ever recorded. Morgan’s eccentric music videos brought a bit of humor to the matter. While the case was still pending, Morgan got a brand new job.

Uncertain is the length of time that either defendant will spend behind bars. The pair was charged with two counts of conspiracy each, which carried a maximum 25-year sentence. According to court records, they have been ordered by the U.S. district judge Colleen K. Kotelly to appear on August 3 for an arraignment hearing and a plea hearing in Washington.

The new filing stated that the “object of the conspiracy was for the defendants MORGAN, and Lichtenstein to unlawfully enrich themselves through laundering the proceeds from the hack and scheme designed to defraud Bitfinex, the victim virtual currency exchange and to prevent detection” of the laundering activities.

CoinDesk requested comment from lawyers for Morgan and Lichtenstein, but neither responded immediately.

Morgan and her husband have been accused of laundering approximately 25,000 BTC, and having access to an additional 94,000 BTC – valued at roughly $3.5 billion when published – stolen in 2016 during an exploit on Bitfinex.

Federal officials were able seize 94,000 BTC after the arrest of the couple in early 2022. The DOJ claimed that the couple conspired together to launder the proceeds. They heavily implied but did not state they were the original hackers. The DOJ claimed that the two conspired to launder the proceeds and heavily implied, but did not claim, they were the original hacker(s).

documents from the past show that the couple and their attorneys had originally intended to fight charges. They claimed there were “many shortcomings in the Government’s evidence and unsupported, concludesory jumps.” In March 2022, prosecutors informed a court that they were in discussions with Morgan’s lawyers about a “resolution” of her case which would not involve a trial.

Liechtenstein is a dual U.S. and Russian citizen who renewed his Russian passport on February 20, 2022, according to prosecutors. In 2019, the duo traveled together to Ukraine, where they are alleged to have created and updated files on online accounts containing information about money-laundering. Defense said that it was a vacation.

CoinDesk’s comment request to the Department of Justice was not immediately answered.

Update (July 10, 2023, 16:45 UTC): Adds details throughout. Updated (July 10, 2023, 16 :45 UTC).

Update (July 10, 2023, 16:57 UTC): Adds background about Morgan’s bail and her defense’s case. Updated background on Morgan’s bail case and her defense.

Updated (July 21, 18:30 UTC): Corrects the attributions of the first two paragraphs .

Marc Hochstein is the editor.