"Netflix's 'Biggest Heist' Facing Legal Backlash: Hacker's Wife Sues for Defamation"

Netflix is facing legal challenges over its documentary "The Biggest Heist Ever," which chronicles the 2016 Bitfinex hack and the subsequent laundering of $4.5 billion in cryptocurrency. Heather Morgan, one of the key figures in the case, has filed a defamation lawsuit against the streaming giant, alleging that the documentary misrepresents her story.

Morgan, who gained notoriety for her involvement in the hack alongside her husband Ilya Lichtenstein, is set to begin her prison sentence. In an exclusive interview before her surrender, Morgan expressed regret for her actions but defended her loyalty to her husband. She claimed that she could have turned on him but chose not to. Morgan's attorney, Serena Wu, has sent cease-and-desist letters to Netflix, producer Library Films, filmmaker Chris Smith, and journalist Nick Bilton, accusing them of spreading defamatory statements about Morgan.

The 2016 Bitfinex hack saw Lichtenstein steal 119,754 Bitcoin, with Morgan helping to launder the funds by allowing her financial accounts to be used and setting up virtual currency exchange accounts to hide the money's source. The couple, who lived in a $1.5 million apartment in FiDi, reportedly spent the stolen funds on gold and NFTs. In 2022, Morgan and Lichtenstein were arrested at their Manhattan home, and authorities found a bag of burner phones and a suspicious file on Lichtenstein's computer.

Morgan and Lichtenstein pleaded guilty to money laundering in 2023, with Morgan receiving an 18-month sentence and Lichtenstein getting five years, of which he has already served more than half. Despite her loyalty to her husband, Morgan expressed interest in befriending Caroline Ellison, the FTX executive who received a reduced sentence for cooperating with authorities.

Netflix's "The Biggest Heist Ever" has been a subject of controversy since its release, with Morgan's lawsuit being the latest development. The documentary has been criticized for its portrayal of the events surrounding the Bitfinex hack and the subsequent laundering of the stolen funds. Morgan's attorney has stated that they are exploring legal options but have started with sending cease-and-desist letters to the parties involved in the production and distribution of the documentary.