Ilya Lichtenstein, the hacker involved in the 2016 Bitfinex Bitcoin theft, was released early thanks to a sentence reduction mechanism under the First Step Act (2018).
According to DL News, Lichtenstein received a reduced sentence due to his participation in rehabilitation programs, under a law signed into law by US President Trump in 2018.
- Ilya Lichtenstein was released early under the First Step Act.
- Sentenced to 5 years (November 2024) for laundering nearly 120,000 bitcoins from the 2016 Bitfinex scheme.
- Heather Morgan received an 18-month sentence and was scheduled for release in October 2025.
Why was Lichtenstein released from prison early?
Lichtenstein said his early release came from the First Step Act (2018), which allows for sentence reduction through participation in a rehabilitation program.
According to DL News, the First Step Act was signed into law by US President Trump in 2018. This act creates a mechanism for prisoners to receive sentence reductions if they participate in rehabilitation programs and meet related conditions.
Lichtenstein was described as the hacker involved in the 2016 Bitfinex Bitcoin theft. His early release came after he was sentenced in November 2024.
Details of the Bitfinex case in 2016 and the resulting verdicts.
Lichtenstein was sentenced to five years in prison in November 2024 for aiding money laundering involving nearly 120,000 bitcoins.
The cryptocurrency in question was nearly 120,000 bitcoins, valued at approximately $4.5 billion at the time of the 2016 theft. Lichtenstein's conviction was linked to his role in assisting in the laundering of these bitcoins.
Lichtenstein's wife, Heather Morgan (online name Razzlekhan), was sentenced to 18 months for aiding and abetting crime. She was released in October 2025.
