Ilya Lichtenstein, the hacker responsible for one of the largest Bitcoin thefts in history, has been released from prison just over a year after being sentenced to five years, citing a criminal justice reform law enacted during former President Donald Trump’s first term.
In a post on X on Friday, Lichtenstein said his early release was made possible by the First Step Act. “Thanks to President Trump’s First Step Act, I have been released from prison early,” he wrote, adding that he intends to “make a positive impact in cybersecurity” moving forward.
The First Step Act, passed in 2018, broadened access to sentence reductions through earned time credits and rehabilitation programs. Lichtenstein was sentenced in November 2024 after pleading guilty to conspiracy to commit money laundering related to the 2016 Bitfinex hack, which saw nearly 120,000 Bitcoin stolen.
His wife, Heather Morgan, also reacted to the news, sharing a photo of the couple and describing the moment as the “best New Year’s present” after years apart. Morgan, who performed under the alias “Razzlekhan” and was charged for assisting in laundering the stolen funds, received an 18-month sentence and announced her own early release in October.
Bitfinex hack duo arrested in 2022
Lichtenstein and Morgan were arrested in 2022, several years after the Bitfinex hack, following an extensive federal investigation that resulted in the seizure of a large portion of the stolen Bitcoin. The high-profile case later inspired a Netflix docuseries and an upcoming feature film.
After receiving a five-year prison sentence, Lichtenstein admitted to hacking Bitfinex in 2016 and laundering “thousands of Bitcoin,” but said he wanted to take full responsibility for the crime rather than implicate his wife. “[My wife] was in no way involved in the hack itself. She didn’t even know about it for years,” he said.
Although the Bitfinex hack affected many victims, an October 2024 court filing suggested that the exchange itself may be the only party eligible for restitution. At the time, the US government asked victims of the 2016 breach to submit impact statements by November.
Trump to review Samourai Wallet co-founder’s case
Lichtenstein’s early release comes as Donald Trump has said he will review the case of Samourai Wallet co-founder Keonne Rodriguez, raising the possibility of a pardon. At a White House press conference last month, Trump said he was aware of the matter and would “take a look at it,” while noting he had not yet reviewed the full details.
Shortly after taking office in January last year, Trump granted a presidential pardon to Ross Ulbricht, the founder of the now-defunct darknet marketplace Silk Road, who had been serving a life sentence. He also pardoned Binance founder Changpeng “CZ” Zhao in October.
