A bombshell in the crypto world: Ilya Lichtenstein, the hacker behind the 2016 Bitfinex breach, has been released from prison years ahead of schedule — thanks to a Trump-era criminal justice reform law. Lichtenstein confirmed the news on X, crediting earned time credits under the First Step Act signed by then-President Donald Trump.
How the First Step Act Cut a 5-Year Sentence
Lichtenstein was sentenced to five years after pleading guilty to laundering roughly 120,000 Bitcoin stolen from Bitfinex — now worth around $10.7 billion at $89,642 per coin. The First Step Act expanded eligibility for sentence reductions through rehabilitation and compliance programs, allowing qualifying inmates to shave years off their federal terms. Lichtenstein took full advantage of that mechanism.
Hacker Couple Reunited: Both Walk Free
His wife, Heather Morgan (known as Razzlekhan), who received an 18-month sentence for laundering stolen crypto, also announced her own early release and posted a reunion photo. Lichtenstein said he plans to pivot to cybersecurity work. He also claimed sole responsibility for the hack, stating Morgan only learned of the scheme later.
Legal Recovery and Media Spotlight
Legal proceedings for restitution are still active. According to court filings, Bitfinex may be the only eligible victim for reimbursement. Federal authorities recovered a substantial portion of the stolen Bitcoin after arrests in 2022 — one of the largest crypto seizures in U.S. history. The case has also drawn major media attention, with a Netflix docuseries and an upcoming film in production.
Trump's Crypto Pardon Pattern
Trump has previously intervened in high-profile crypto cases: he granted clemency to Silk Road founder Ross Ulbricht and pardoned Binance founder Changpeng Zhao (CZ). He recently signaled he would review another prosecution involving Keonne Rodriguez. These moves show how Trump-era reforms continue reshaping the landscape of crypto crime and punishment.