Heather Morgan Sentenced for Money Laundering
Heather Morgan, known as the “Crocodile of Wall Street,” has been sentenced to 18 months in prison for her role in laundering approximately $13 billion in stolen Bitcoin in 2016, alongside her husband, Ilya Lichtenstein.
Controversial Claims About Donald Trump
Recently, Morgan stirred controversy by suggesting that former President Donald Trump had played a role in shortening her sentence. In a provocative video filmed while she was in a bathtub, she referred to Trump as “Papa Trump” and expressed gratitude for his alleged assistance.
“Thank you, Papa Trump, for helping me with my sentence.”
However, this claim was quickly scrutinized and found to be invalid. A week later, Morgan admitted on Instagram that Trump had not commuted her sentence, clarifying misconceptions about her prison time.
Legislative Measures Affecting Sentence Reduction
Morgan explained that her 18-month term could potentially be reduced due to legislative measures such as the First Step Act (FSA) and the Second Chance Act (SCA).
The FSA, enacted by Trump in 2018, aims to optimize the federal prison population and reduce recidivism through incentives like reduced sentences for good behavior and participation in programs designed for inmate reintegration. Morgan noted that inmates attending FSA-sponsored classes could earn an additional 15 days off their sentences for each month of participation.
She also mentioned the SCA, originally signed into law by former President George W. Bush in 2008, which has been crucial in providing home confinement options for inmates. A memo from the Bureau of Prisons in May 2025 indicated a willingness to transition eligible inmates to home confinement as soon as legally permissible.
Home Confinement and Its Regulations
Previously, inmates could only serve a fraction of their sentences—up to 10% and not exceeding six months—in home confinement. Morgan claimed she had received more than this percentage, attributing it to Trump’s influence.
However, it is essential to understand that inmates in home confinement remain under Bureau of Prisons (BOP) supervision and often wear electronic monitoring devices. This arrangement includes strict regulations such as curfews, drug testing, and random inspections.
Current Status and Release Date
As of now, Morgan’s official release date is set for December 28, 2025, according to BOP records. Despite her claims, she continues to serve her sentence, and no commutation from Trump has occurred, as she later confirmed. Attempts by Bitcoin.com to obtain comments from her legal representatives went unanswered by the time of publication.
