DDC Hearing In $3.6B Crypto Launder Case of Lichtenstein and Morgan, Cahill Late on Train But No Public Line?
After covering 1st bail hearing in SDNY, Inner City Press wrote to Judge Howell to maintain public call-in line in DDC - no answer, 2 pm Monday as Cahill Gordon is accommodated. What about the public?
By Matthew Russell Lee, Patreon Maxwell Book Song
BBC - Guardian UK - Honduras - DDC Filing - Vlog
FEDERAL COURT, Feb 14 – After Ilya “Dutch” Lichtenstein and his wife, Heather Morgan were arrested in lower Manhattan for allegedly trying to launder $3.6 billon in crypto-currency linked to the hack of Bitfinex, they appeared in before Magistrate Judge Debra C. Freeman of the U.S. District Court for the Southern District of New York.
After a lengthy proceeding, conditions of release were set: $5 million and $3 million bond, respectively. Vlog. Then, as Inner City Press predicted at 7 pm, the order was stayed by the DDC - Chief Judge Beryl Howell, pending DDC review. Photo here.
Judge Howell ordered the Marshals to move Lichtenstein and Morgan to DC for an in-person hearing on February 14. There was no provision for a call-in line, so Inner City Press wrote to Judge Howell and counsel to request a call in line. Letter on DocumentCloud here.
An hour before the hearing, no response - but this: "MINUTE ORDER as to ILYA LICHTENSTEIN, HEATHER RHIANNON MORGAN, RESCHEDULING until 2:30 PM due to defense counsel's train delay, the Motion Hearing scheduled for today, February 14, 2022, before Chief Judge Beryl A. Howell; defense counsel is hereby authorized to appear via videoconference from his offices in New York. Signed by Chief Judge Beryl A. Howell on 2/14/2022." So Cahill Gordan can Zoom in, but the public is excluded?
More accomodation of defense counsel, with no response on public access: "MINUTE ORDER as to ILYA LICHTENSTEIN, HEATHER RHIANNON MORGAN, RESCHEDULING until 2:30 PM due to defense counsel's train delay, the Motion Hearing scheduled for today, February 14, 2022, before Chief Judge Beryl A. Howell; defense counsel is hereby authorized to appear via videoconference from his offices in New York. Signed by Chief Judge Beryl A. Howell on 2/14/2022." Watch this site.
On February 10, the US filed a supplemental memo to detain them (and reverse SDNY Magistrate Judge Debra C. Freeman's order allowing release on bond). Inner City Press quickly tweeted some of the photos, here
In US v. Lichtenstein & Morgan, now in DDC Court DOJ puts in a chart of Bitfinex hack laundering they allege - including through #Uber, #WalMart, Hotels [dot] com and #PlayStation. [Here]
Among Ilya Lichtenstein's Passport_Ideas files, this: "real russian passport from Lugansk. Must pick up in person." Also, "eu doc fakes." [Here]
More from the DOJ filing in DDC: "Morgan posted photos to social media during her trip indicating that she was staying at a Hilton hotel near the 11 Mirrors Design Hotel. Document titled “ukraine_package,” explains “how to anonymously receive a parcel in Ukraine”
At last - photo of the "burner phone" bag in Lichtenstein's and Morgan's lower Manhattan apartment [Here]
Full filing here.
On February 9, a schedule: "as to ILYA LICHTENSTEIN, HEATHER RHIANNON MORGAN: defendants' opposition to 8 Motion for Review of Release Order due by 5:00 PM on 2/9/2022; government's reply due by 2:00 PM on 2/10/2022; Motion Hearing scheduled for 2/11/2022."
Inner City Press live tweeted the SDNY proceeding, thread here. Some:
All rise! Heather Morgan is in a white hoodie; Lichtenstein in grey V-neck.
AUSA: Lichtenstein had a computer folder called "Persona," with ID for different people. He had another file called "Passport_Ideas." They had 50 electronic devices, in a bag labeled "burner phones."
AUSA: Lichtenstein was born in Russia. They were in Ukraine in 2019. Morgan, from 2011 to 2013, lived in Hong Kong and Egypt. Morgan has been studying Russian, and speaks Korean.
[Morgan leans over and whispers to her Cahill Gordan lawyer]
Judge Freeman: Did the use use aliases? AUSA: Yes. They used false names to open accounts.
Lichtenstein's lawyer: He fled Russia to escape religious persecution. It is unremarkable that his wife has been learning Russian. He grew up in Chicago.
Lichtenstein's lawyer: They have been planning a family. I'll get to there. Morgan is a journalist and runs a sales consulting company that employs 30 freelance writers. Her father works for US government agencies.
Judge Freeman: I'm going to add some conditions after speaking with Pre-Trial Services. Defendants to pay for all or part of location monitoring...
Now they are led away by the Marshals.
The substantive case, in DDC, is US v. Lichtenstein, et al., 22-mj-22 (RMM)
The SDNY cases: US v. Lichtenstein, 22-mj-1279 (Freeman) and US v. Morgan, 22-mj-1280 (Freeman)
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