The self-styled “Crocodile of Wall Street” was sentenced to 18 months in prison for helping her husband Ilya Lichtenstein launder roughly $13 billion worth of stolen bitcoin in 2016.
‘Razzlekhan’ Backtracks Her Claims of a Trump Commutation
A little over two weeks ago, convicted felon Heather “Razzlekhan” Morgan implied that U.S. President Donald Trump had commuted her 18-month prison sentence. “I want to give a shoutout to ‘Papa Trump’ for making my 18-month sentence shorter,” Morgan said during a raunchy scene where the 35-year-old addressed her followers while naked in a bathtub. But after multiple publications debunked the claim, Morgan, about a week later, seemed to confirm that indeed, no commutation had actually taken place, in an Instagram post provided to Bitcoin.com by her lawyers.
“It has come to my attention that many people in America, including journalists, do not know how the legal system works, or how it works with sentencing when you go to prison,” Morgan said, before explaining how her 18-month sentence was significantly whittled down, thanks to programs enabled by the First Step Act (FSA) and Second Chance Act (SCA).
Both pieces of legislation are aimed at reducing America’s prison population and recidivism rates. FSA was signed into law by Trump in 2018 and shaves off prison time for good behavior and attending recidivism reduction classes. “Basically, every day you’re … taking FSA classes, you get 15 days off every month,” Morgan explained.
Heather Morgan with her husband Ilya Lichtenstein. The couple stole and laundered nearly 120,000 BTC from crypto exchange Bitfinex in 2016. Lichtenstein, now known as the Bitfinex hacker, is still serving his 5-year sentence for the crime.
She also discussed SCA in the same Instagram video. SCA was originally signed into law in 2008 by President George W. Bush. Then, in May 2025, the Bureau of Prisons (BOP) issued a memo where it highlighted efforts to prioritize SCA home confinement for eligible inmates. Previously, the general rule had been that inmates could serve up to 10% of their total sentence (up to a maximum of six months) in home confinement, according to Colorado-based Evergreen Attorneys. But in the May memo, the BOP clearly underscored that it wanted inmates “transferred to home confinement as soon as statutorily possible,” which was a lucky development for Morgan.
“I ended up getting more than 10%,” she boasted. “All of that is, guess what, thanks to ‘Papa Trump.’”
While Trump was indeed responsible for FSA, it was Bush who signed SCA into law, although Morgan correctly points out that the current BOP director, William “Billy” Marshall III, who brought about the home confinement reforms in May, was recently appointed by the Trump administration.
It’s also important to realize that home confinement doesn’t necessarily mean not leaving the house. Inmates in home confinement can go to work and attend appointments as long as they obtain permission beforehand. An electronic monitoring device, such as an ankle bracelet, is typically used to determine the inmate’s location at all times.
(BOP records show Heather Morgan’s official release date is December 28, 2025 / Bureau of Prisons)
“Home confinement is still considered BOP custody,” explained Evergreen Attorneys Partner David Boyer. “And there are often strict restrictions involved such as GPS location monitoring, random drug tests, random inspections, curfews, etc.”
It seems Morgan is still an inmate with a release date of December 28, 2025, as reflected in the BOP database. Also, she herself appears to have confirmed that ‘Papa Trump’ never commuted her sentence. Bitcoin.com reached out to Morgan’s law firm for further clarification, but they had not responded at the time of publication.
FAQ ⚡
-
Did Trump commute Heather Morgan’s prison sentence?
No evidence of a presidential commutation exists. -
Why was Morgan’s sentence shortened?
She credited early release programs under the First Step Act and Second Chance Act for reducing her time. -
Who actually created those programs?
The First Step Act was signed by Trump in 2018, but the Second Chance Act was enacted by George W. Bush in 2008. -
Is Morgan still in custody?
Most likely. Bureau of Prisons records confirm she remains under home-confinement supervision.
