Netflix face legal action over Bitfinex Bitcoin heist documentary

Netflix, one of the major streaming giants, is facing legal action over a documentary it featured on the Bitfinex Bitcoin documentary. On Monday, lawyers representing Heather “Razzlekhan” Morgan—a rapper and social media influencer—sent cease-and-desist letters to Netflix over its documentary “Biggest Heist Ever.”

Morgan will report to the Federal prison on February 4 after he was found guilty of laundering funds tied to the infamous multi-billion-dollar Bitcoin heist, which the documentary speaks of.

Netflix is accused of defamation and abuse of California’s two-party recording laws. Library Films, the production house behind the documentary, is also named in the suit. So far, Netflix has not responded to the development.

In addition to defamation charges, Morgan is accusing Netflix and Library Films of violating the privacy of wedding attendees by documenting the event without consent from guests or even Ilya Lichtenstein, the accused husband.

As represented by Serena Wu, Heather Morgan’s attorney, appearing in a Netflix documentary after attending a wedding is a breach of privacy.

Most statements in the documentary are malicious, false, and defamatory

The demand letter tells Netflix to remove guests’ likenesses from the documentary and not use them again. Her attorneys have clearly stated that if Morgan does not get what she wants, she may file a class action.

Morgan’s attorneys argued that the documentary mostly made evil, false, and defamatory statements about them. They cited a context in which the documentary claims that Morgan and Lichtenstein bought stolen passports, debit cards, and other forms of ‘identity documents’ from the dark web.

The demand claims that the information above is not based on facts, and it’s driving a false narrative that Morgan was the architect behind the grand theft.

The letter further states that Netflix and the production house should have embarked on a fact-finding mission to avoid slandering their client. Basic due diligence would have shown how false the statements in the documentary are. Public records, including court filings, absolved Morgan from executing the hack.

Netflix is accused of defaming several wedding attendees, including Morgan’s father-in-law, whom the documentary called a hacker. The lawyers claim that although some sentiments are not aimed directly at Morgan, they show how the documentary was done in bad faith, disregarding truths and without any factual basis.

Morgan helped her husband launder stolen crypto funds

The celebrity lawyers indicated that Morgan expressly reserves her legal and equitable rights and restoratives, including rights to seek legal redress. If Netflix avoids acting on their demands, the singer will explore all relevant options to protect her rights.

Lichtenstein has been fighting a protracted battle in the corridors of law since 2016 when he was accused of hacking Bitfinex and stealing approximately 120,000 Bitcoin. He was later sentenced to five years in prison in November. Morgan was charged as an accomplice and sentenced to 18 months in prison.

Crypto hacking is one of the common forms of crypto theft. On September 19, two suspects, 20-year-old Malone Lam, and 21-year-old Jeandiel Serrano, were arrested in Miami and charged with stealing more than 4,100 Bitcoin from a victim in Washington, D.C. The two were accused of stealing and laundering crypto to facilitate a lavish lifestyle.

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