Ilya Lichtenstein, Bitfinex hack launderer, wins early release under Trump law

Bitfinex hacker Ilya Lichtenstein, jailed for laundering Bitcoin from the 2016 breach, has been released early from prison under Trump’s First Step Act reforms.

Summary

• Ilya Lichtenstein, who laundered Bitcoin from the 2016 Bitfinex hack, has been released from prison earlier than scheduled.​
• He said the First Step Act enabled his early release and plans to work in cybersecurity, thanking supporters in a New Year post.​
• Lichtenstein got 5 years, while his wife Heather Morgan served about 8 months of an 18‑month term; both cooperated with U.S. authorities.

Ilya Lichtenstein, a Russian-American tech entrepreneur convicted for laundering Bitcoin tied to the 2016 Bitfinex hack, has been released from prison ahead of schedule under a sentencing reform law signed by former President Donald Trump, according to statements posted online.

Bitfinex hacker released early

Lichtenstein announced his release after New Year’s Day, stating the early release was made possible through the First Step Act. He indicated plans to work in cybersecurity and thanked supporters, according to the social media post.

U.S. law enforcement arrested Lichtenstein and his wife, Heather Morgan, in 2022 following an investigation into Bitcoin linked to the 2016 Bitfinex breach. Prosecutors accused the couple of conspiring to conceal and launder tens of thousands of Bitcoin taken during the hack, with authorities valuing the amount in the billions of dollars at the time. The case became one of the most high-profile cryptocurrency-related prosecutions in the United States.

In November 2024, Lichtenstein was sentenced to five years in federal prison after pleading guilty to charges related to the 2016 Bitfinex theft. Morgan received an 18-month sentence for her role in the case and was released in October after serving approximately eight months, according to court records.

Lichtenstein’s sentence reduction was made possible through the First Step Act, a 2018 law signed by Trump that allows inmates to reduce their sentences by participating in rehabilitation programs, educational courses, and other activities. The legislation has continued to affect sentencing outcomes in financial and cryptocurrency-related cases, particularly where defendants cooperate with ongoing investigations.