Bitfinex Hacker Ilya Lichtenstein Released from Prison After One Year

Ilya Lichtenstein, responsible for the spectacular hack of the Bitfinex crypto exchange in 2016, has been released after serving just one year of his five-year prison sentence. His early release was made possible by the so-called First Step Act – a criminal justice reform law passed during Donald Trump's first term in 2018 ^[1].

The law allows inmates to reduce their sentences by participating in rehabilitation programs and demonstrating good behavior. Lichtenstein expressed his gratitude for the law on the platform X and announced his intention to work in the cybersecurity field in the future ^[1].

The hacker received his sentence in November 2024 after confessing to stealing and laundering nearly 120,000 Bitcoin from Bitfinex. His wife Heather Morgan, known by the pseudonym "Razzlekhan," was sentenced to 18 months for aiding in money laundering and was released early in October ^[1].

The couple was arrested in 2022 following extensive investigations during which U.S. authorities were able to secure the majority of the stolen Bitcoin. While compensation matters continue to be litigated in court, Trump has also indicated his intention to review other prominent crypto cases ^[1].