Billion-dollar Bitcoin hacker Ilya Lichtenstein released early, thanks Trump

Ilya Lichtenstein, the hacker behind one of the largest Bitcoin thefts on record, has been released from prison just over a year after receiving a five-year sentence, thanks to a criminal justice reform law signed during former President Donald Trump’s first term.

“Thanks to President Trump's First Step Act, I have been released from prison early,” Lichtenstein said in a Friday post on X. “I remain committed to making a positive impact in cybersecurity as soon as I can,” he added.

The First Step Act, passed in 2018, expanded eligibility for sentence reductions through earned time credits and other rehabilitation measures. Lichtenstein was sentenced in November 2024 after pleading guilty to a money laundering conspiracy tied to the 2016 hack of Bitfinex, in which nearly 120,000 Bitcoin (BTC) were stolen.

Lichtenstein’s wife, Heather Morgan, also acknowledged the news, posting a photo of the couple and calling it the “best New Year’s present” after years of separation. Morgan, who performed under the name “Razzlekhan” and was charged for helping launder the stolen funds, received an 18-month sentenceand announced her own early release in October.

Morgan posts a photo of the couple after Lichtenstein’s release. Source: Heather Morgan

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Bitfinex hack duo arrested in 2022

Lichtenstein and Morgan were arrested in 2022, years after the hack, following a sweeping federal investigation that ultimately led to the seizure of a significant portion of the stolen Bitcoin. Their case later became the subject of a Netflix docuseries and an upcoming film.

After being sentenced to five years in prison, Lichtenstein confessed to hacking Bitfinex in 2016 and laundering “thousands of Bitcoin” but suggested he wanted to shoulder the entirety of the blame rather than his wife. “[My wife] was in no way involved in the hack itself. She didn’t even know about it for years,” he said.

Though there were many victims of the Bitfinex hack, the exchange may be the only party that qualifies for reimbursement, according to an October 2024 court filing. The US government had asked victims of the 2016 hack to submit impact statements by November.

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Trump to review case of Samourai wallet co-founder

Lichtenstein’s early release comes as Trump has said he will review the case of Samourai Wallet co-founder Keonne Rodriguez, signaling he may consider a potential pardon. Speaking at a White House press conference last month, Trump said he was aware of the case and would “take a look at it,” while noting he was not yet familiar with the details.

In January last year and shortly after taking office, Trump granted Ross Ulbricht, the founder of the defunct darknet marketplace Silk Road, a presidential pardon on his life sentence. He also pardoned Binance founder Changpeng “CZ” Zhao in October.

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