Ilya Lichtenstein, the hacker behind one of the largest Bitcoin thefts in history, was released just over a year after serving a five-year sentence thanks to the Criminal Justice Reform Act signed into law during former President Donald Trump’s first term.
“Thanks to President Trump’s First Step Act, I was able to be released early,” Lichtenstein said in a post on X on Friday, adding, “I remain committed to making a positive impact on cybersecurity as soon as possible.”
The First Step Act, passed in 2018, expanded eligibility for sentence reductions through paid leave and other rehabilitation measures. Lichtenstein will be sentenced in November 2024 after pleading guilty to money laundering conspiracy related to the 2016 Bitfinex hack in which nearly 120,000 Bitcoins (BTC) were stolen.
Lichtenstein’s wife Heather Morgan also confirmed the news, posting a photo of the couple and calling it “the best New Year’s gift” after years of separation. Morgan, who performs under the name “Razul Khan,” was charged with aiding and abetting the laundering of stolen funds and was sentenced to 18 months in prison, before announcing his early release in October.
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Bitfinex hacking duo arrested in 2022
Lichtenstein and Morgan were arrested in 2022, several years after the hack. What followed was a thorough investigation by the federal government, which ultimately resulted in the seizure of a significant portion of the stolen Bitcoin. Their case was later the subject of a Netflix documentary series and an upcoming movie.
After being sentenced to five years in prison, Lichtenstein confessed to hacking Bitfinex in 2016 and laundering “thousands of bitcoins,” but suggested he wanted to take full responsibility, not his wife. “(My wife) was not involved in the hacking itself at all. She didn’t even know about it for years,” he said.
Although there were many victims of the Bitfinex hack, the exchange may be the only party eligible for redemption, according to an October 2024 court filing. The US government had asked victims of the 2016 hack to submit impact reports by November.
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Trump to consider lawsuit against Samurai Wallet co-founder
Lichtenstein’s early release comes as President Trump has said he will review the case of Samurai Wallet co-founder Keon Rodriguez, hinting that he may consider pardoning him. At a White House press conference last month, President Trump said he was aware of the matter and would “look into it,” but said he didn’t yet know the details.
Last January, shortly after taking office, Trump granted a presidential pardon to Ross Ulbricht, the founder of the defunct darknet market Silk Road, who was sentenced to life in prison. In October, he pardoned Binance founder Changpeng “CZ” Chao.
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