05.01.2026
2 min
385
Ilya Lichtenstein, who was convicted for his role in the hack of cryptocurrency exchange Bitfinex, has been released early from prison under the provisions of the First Step Act. The case remains one of the most significant crypto-related crimes on record.
Lichtenstein was sentenced to five years in prison in 2024 after pleading guilty to a money laundering conspiracy linked to the theft of nearly 120,000 bitcoin from Bitfinex. At the time of the 2016 hack, the stolen cryptocurrency was valued at around $72 million, but its current market value exceeds $10 billion.
Despite the sentence, Lichtenstein served just over one year in custody following his guilty plea. In a post on X, he credited Donald Trump and the First Step Act for his early release and stated that he plans to contribute positively to the cybersecurity field going forward.
The First Step Act, signed into law in 2018, introduced sweeping reforms to the US federal prison system, allowing inmates to earn time credits toward early release or home confinement. These provisions have since been applied to a wide range of federal cases.
Lichtenstein’s wife, Heather Morgan, also pleaded guilty for her role in laundering the stolen funds. She received an 18-month sentence and was released earlier in 2025. Trump has previously been associated with high-profile cybercrime-related pardons, including cases involving major cryptocurrency figures and darknet operators.
The early release of Ilya Lichtenstein highlights how criminal justice reforms can significantly alter the outcomes of even the most notorious cybercrime cases. At the same time, the Bitfinex hack continues to serve as a cautionary tale for the cryptocurrency industry.
