Ilya Lichtenstein, convicted of laundering Bitcoin linked to the 2016 Bitfinex hack, has been released from prison before the end of his sentence. According to statements he posted online, the reduction came through the U.S. First Step Act.
Release announced after New Year’s Day
Lichtenstein said after New Year’s Day that he had been released and credited the First Step Act for the earlier exit. In the same social media message, he said he plans to work in cybersecurity and thanked supporters. The available report did not give a precise release date.
Case tied to Bitcoin stolen in the 2016 breach
U.S. law enforcement arrested Lichtenstein and his wife, Heather Morgan, in 2022 after investigating Bitcoin connected to the 2016 Bitfinex breach. Prosecutors said the couple conspired to conceal and launder tens of thousands of stolen Bitcoin. At the time, authorities valued the assets in the billions of dollars, making the case one of the highest-profile cryptocurrency prosecutions in the United States.
Both defendants cooperated with authorities
In November 2024, Lichtenstein was sentenced to five years in federal prison after pleading guilty to charges related to the Bitfinex theft. Morgan received an 18-month sentence for her role in the case and was released in October after serving about eight months, according to court records.
The report says the First Step Act was signed into law by Donald Trump in 2018. The law allows inmates to cut time from their sentences through rehabilitation programs, educational courses, and other approved activities. It has continued to affect sentencing outcomes in financial crime and crypto-related cases, especially where defendants cooperate with ongoing investigations. Lichtenstein and Morgan both cooperated with U.S. authorities.