Ilya Lichtenstein, the hacker behind certainly one of the most important Bitcoin thefts of all time, was released from prison just over a yr after serving a five-year sentence because of a criminal justice reform law signed during former President Donald Trump's first term.
“Thanks to President Trump’s First Step Act, I used to be released from prison early,” Lichtenstein said in a Friday post on X. “I remain committed to creating a positive impact on cybersecurity as quickly as possible,” he added.
The “First Step Act” passed in 2018 expanded the entitlement to reduced sentences through time credits and other rehabilitation measures. Lichtenstein was sentenced in November 2024 after pleading guilty to a money laundering conspiracy related to the 2016 Bitfinex hack wherein nearly 120,000 Bitcoin (BTC) was stolen.
Lichtenstein's wife Heather Morgan also acknowledged the news, posting a photograph of the couple and calling it the “best New Year's gift” after years of separation. Morgan, who went by the name “Razzlekhan” and was charged with aiding and abetting the laundering of the stolen funds, received an 18-month sentence and announced her own early release in October.
Morgan posts a photograph of the couple after Lichtenstein's release. Source: Heather Morgan
Bitfinex hack duo arrested in 2022
Lichtenstein and Morgan were arrested in 2022, years after the hack, following a comprehensive federal investigation that ultimately led to the seizure of a good portion of the stolen Bitcoin. Her case later became the topic of a Netflix documentary and an upcoming film.
After being sentenced to 5 years in prison, Lichtenstein confessed to hacking Bitfinex and laundering “1000’s of Bitcoin” in 2016, but suggested he desired to take all of the blame, not his wife. “[My wife] was under no circumstances involved within the hack itself. She didn’t even learn about it for years,” he said.
Although there have been many victims of the Bitfinex hack, the exchange stands out as the only party entitled to a refund, in keeping with an October 2024 court filing. The US government had asked victims of the 2016 hacker attack to submit impact statements by November.
Trump is reviewing the case of the co-founder of Samourai Wallet
Lichtenstein's early release comes after Trump announced he was reviewing the case of Samourai Wallet co-founder Keonne Rodriguez, suggesting he could also be considering a possible pardon. At a White House news conference last month, Trump said he was aware of the case and would “take a have a look at it,” noting he was not yet accustomed to the main points.
Last January, shortly after taking office, Trump granted Ross Ulbricht, the founding father of the defunct darknet marketplace Silk Road, a presidential pardon for his life sentence. In October, he also pardoned Binance founder Changpeng “CZ” Zhao.
