Convicted crypto criminal credits Trump-era justice reform for early prison release
Ilya Lichtenstein, the hacker responsible for the 2016 Bitfinex Bitcoin breach, has been released from prison more than three years ahead of schedule. His early release comes just over a year after receiving a five-year sentence, made possible under the First Step Act, a US criminal justice reform law enacted in 2018.
Early Release Under First Step Act
In a public statement, Lichtenstein confirmed that he benefited from the First Step Act, which allows inmates to earn sentence reductions through rehabilitation programs and earned time credits. He was sentenced in November 2024 after pleading guilty to money laundering conspiracy linked to the theft of nearly 120,000 Bitcoin, worth billions of dollars at current prices.
Lichtenstein said he intends to re-enter the cybersecurity field, framing his future work as a way to contribute positively after years of incarceration.
Background of the Bitfinex Hack
The Bitfinex hack remains one of the largest cryptocurrency thefts in history. Although the hack occurred in 2016, Lichtenstein and his wife, Heather Morgan, were not arrested until 2022, following a lengthy federal investigation that resulted in the seizure of a large portion of the stolen Bitcoin.
Morgan, who assisted in laundering the funds, received an 18-month sentence and was herself released early in late 2025.The case highlights how criminal justice reform laws can significantly alter sentencing outcomes, even in high-profile financial crime cases involving digital assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.