Ilya Lichtenstein, the convicted hacker behind one of the largest cryptocurrency thefts in history, has been released from prison earlier than expected. His release comes just over a year after he was sentenced to five years for stealing billions of dollars in Bitcoin. Lichtenstein publicly credited former US President Donald Trump’s criminal justice reforms for his early freedom.
The development has once again drawn attention to the infamous Bitfinex hack and the controversial legacy of the First Step Act.
Early Release Linked to Trump’s First Step Act
Lichtenstein confirmed his release through a post on X, formerly known as Twitter. In his message, he thanked Donald Trump directly. He stated that the First Step Act made his early release possible. The law was passed in 2018 during Trump’s first term as president.
The First Step Act introduced major reforms to the US criminal justice system. It expanded opportunities for early release through earned time credits. Inmates can reduce prison time by participating in rehabilitation and educational programs. The law also aimed to reduce overcrowding and encourage reintegration into society.
A Trump administration official confirmed the early release in a statement to CNBC. The official said Lichtenstein had served a significant portion of his sentence. He is now under home confinement. This arrangement follows federal statutes and Bureau of Prisons policies.
Lichtenstein also stated that he plans to contribute positively to the cybersecurity field. He said he intends to use his skills in a lawful and constructive way.
Background of the Historic Bitfinex Bitcoin Hack
Lichtenstein was convicted for his role in the 2016 hack of the Bitfinex cryptocurrency exchange. The breach resulted in the theft of nearly 120,000 Bitcoins. At the time, the stolen assets were worth millions. Over the years, their value grew into billions of dollars.
The case shocked the global crypto community. It exposed security weaknesses in early cryptocurrency exchanges. It also became one of the most complex digital asset investigations ever conducted by US authorities.
Lichtenstein was arrested in 2022 after investigators traced the stolen funds through blockchain analysis. Much of the stolen Bitcoin was eventually recovered by law enforcement.
Heather Morgan’s Role and Public Attention
Lichtenstein’s wife, Heather Morgan, was also charged in connection with the stolen Bitcoin. Authorities accused her of helping launder the illicit funds. Morgan is widely known by her online persona “Razzlekhan” and the nickname “the Crocodile of Wall Street.”
She received an 18-month prison sentence. According to her own post on X in October, she was also released earlier than scheduled. After Lichtenstein’s announcement, Morgan shared a photo of the couple together, signaling their reunion.
The unusual nature of their case has attracted widespread media attention. Their story became the subject of a Netflix docuseries. An upcoming film is also reportedly in development.
Lichtenstein’s early release has sparked debate. Supporters cite criminal justice reform. Critics question leniency in high-profile financial crimes. The case continues to fuel discussion around cybercrime, punishment, and reform.
