# Lichtenstein Thanks Trump Law for Bitfinex Early Release
Ilya Lichtenstein, the hacker behind the infamous 2016 Bitfinex theft of nearly 120,000 Bitcoin worth over $10 billion today, has been released early from prison after serving just 14 months of a five-year sentence. In a post on X, Lichtenstein directly credited President Donald Trump's First Step Act for his freedom, sparking debates on prison reform, crypto crime accountability, and the law's impact on high-profile cases.[1][2][3]
Bitfinex Hack: The $10 Billion Crypto Heist Explained
The 2016 Bitfinex hack remains one of the largest crypto thefts in history, with Lichtenstein exploiting vulnerabilities in the exchange's authorization systems to steal 119,574 BTC through over 2,000 transactions.[1][2][3] U.S. authorities later recovered most of the funds, valued at around $4.5 billion at the time of arrest and surging to over $10 billion at current prices.[2][3][6]
Lichtenstein pleaded guilty in 2023 to money laundering conspiracy, admitting he acted alone in the hack two years before meeting his wife, Heather Morgan.[1][3][4] Sentenced in November 2024 to five years, he entered prison in early 2025 but qualified for early release due to good behavior and rehabilitation programs.[1][2][5] A Trump administration official confirmed the move aligns with Bureau of Prisons policies, placing him on home confinement after "significant time served."[1][4]
First Step Act: How Trump's 2018 Prison Reform Enabled Early Release
Signed by President Trump on December 21, 2018, the bipartisan First Step Act introduced a risk-and-needs assessment system, allowing non-violent offenders like Lichtenstein to earn time credits via education, work, and rehab programs.[1][2][3][4] As a money laundering conviction—deemed non-violent—Lichtenstein benefited, securing release on January 2, 2026, after about 14 months.[2][5]
Lichtenstein posted on X: “Thanks to President Trump’s First Step Act, I have been released from prison early. I remain committed to making a positive impact in cybersecurity.”[1][3][4] He expressed remorse in a 2024 prison video, vowing to use his hacking skills for good.[3]
Family Reunion and Broader Crypto Leniency Trends
Heather Morgan, aka "Razzlekhan," Lichtenstein's wife and co-conspirator, celebrated the reunion as her "best New Year’s present" after her own early release in October 2025 under the same law, serving just eight months of an 18-month sentence.[1][3][4] The couple, arrested in 2022, had been separated for four years.[1]
This case highlights a perceived "wave of leniency" in crypto enforcement, including Trump's pardon of Binance founder Changpeng Zhao and Silk Road's Ross Ulbricht.[3][5] Critics question deterrence for future hacks, while supporters praise rehabilitation-focused reforms amid Bitcoin's rising influence in politics.[2][3]
Reactions and Future Implications for Crypto Crime
Lichtenstein's post drew mixed responses, with supporters praising his reform and detractors doubting his intentions.[4] The release reignites discussions on balancing justice with reform in crypto cases, especially as stolen Bitfinex funds' value eclipses traditional heists.[2][6] Lichtenstein faces three years of supervised release and plans cybersecurity contributions.[4][6]
Frequently Asked Questions
Who is Ilya Lichtenstein and what did he do?
Ilya Lichtenstein orchestrated the 2016 Bitfinex hack, stealing nearly 120,000 BTC worth over $10 billion today by exploiting exchange vulnerabilities and laundering via 2,000+ transactions. He pleaded guilty to money laundering conspiracy.[1][2][3]
What is the First Step Act and how did it help Lichtenstein?
The **First Step Act**, signed by Trump in 2018, lets non-violent federal inmates earn early release credits through rehab and programs. Lichtenstein qualified after 14 months of his five-year sentence.[1][2][4]
When was Lichtenstein released from prison?
Lichtenstein was released to home confinement on January 2, 2026, after serving about 14 months, confirmed by a Trump official as per Bureau of Prisons policy.[1][2][4]
What role did Heather Morgan play in the Bitfinex hack?
Heather Morgan, Lichtenstein's wife, assisted in laundering the stolen Bitcoin and received an 18-month sentence. She was released early in October 2025 under the First Step Act.[1][3][4]
How much were the stolen Bitfinex Bitcoins worth?
The 119,574 BTC stolen in 2016 were worth $4.5 billion at arrest; today, they exceed $10 billion at current prices. Most funds were recovered by authorities.[2][3][6]
Is there a trend of leniency for crypto criminals under Trump policies?
Yes, cases like Lichtenstein's, Morgan's release, CZ's pardon, and Ross Ulbricht's highlight reduced sentences or pardons in crypto-related offenses.[3][5]
🔄 Updated: 1/3/2026, 8:00:17 PM
**BREAKING: Bitfinex Hacker Ilya Lichtenstein Released Early, Credits Trump's First Step Act**
Ilya Lichtenstein, sentenced to five years in November 2024 for the 2016 Bitfinex hack that stole nearly 120,000 BTC (now worth over $10 billion), walked free on January 2, 2026, after serving just over one year, thanks to sentence reduction under President Trump's 2018 First Step Act for good behavior and rehabilitation.[1][2][3] In a Thursday X post, he stated: “Thanks to President Trump’s First Step Act, I have been released from prison early... I remain committed to making a positive impact in cybersecurity as soon as I can
🔄 Updated: 1/3/2026, 8:10:14 PM
**NEWS UPDATE: White House Backs Lichtenstein's Early Release Under Trump Law**
A White House official confirmed Ilya Lichtenstein's early release after roughly 14 months of his five-year sentence for the 2016 Bitfinex hack involving 120,000 bitcoins, stating he served "significant time on his sentence" and is now on home confinement "consistent with statute and Bureau of Prisons policies."[1][2] The release credits President Trump's 2018 First Step Act, a prison-reform law, which Lichtenstein thanked directly on X: "Thanks to President Trump's First Step Act, I have been released from prison early."[1][2] This follows federal guidelines applied to his November 2024 sentencin
🔄 Updated: 1/3/2026, 8:20:14 PM
**NEWS UPDATE: Crypto Experts Debate Lichtenstein's Early Release Under Trump Law**
Ilya Lichtenstein, convicted for the 2016 Bitfinex hack stealing nearly **120,000 BTC** (now worth over **$10 billion**), was released after serving just **14 months** of his five-year sentence thanks to the **First Step Act**, crediting it directly: “Thanks to President Trump’s First Step Act, I have been released from prison early”[1][3][4]. Crypto analysts highlight its role in reducing sentences for non-violent offenses like his money laundering conspiracy via rehabilitation credits, but warn it reignites debates on **deterrence and accountability** in major crypto crimes, with Coinpedia noting how suc
🔄 Updated: 1/3/2026, 8:30:17 PM
**BREAKING: Bitfinex Hacker Ilya Lichtenstein Credits Trump’s First Step Act for Early Release After 14 Months**
Crypto legal experts highlight Lichtenstein’s release on January 2, 2026, after serving just 14 months of a five-year sentence for laundering 119,574 BTC stolen in the 2016 $10 billion Bitfinex hack, as a stark example of the First Step Act’s impact on non-violent crypto offenders via earned time credits for rehabilitation.[1][2][3] Industry analysts debate its implications amid a “wave of leniency,” noting parallels like Heather Morgan’s eight-month release and CZ’s pardon, with Coinpedia warning it “reignites debate over deterrence, fairnes
🔄 Updated: 1/3/2026, 8:40:14 PM
**NEWS UPDATE: Lichtenstein Credits Trump’s First Step Act for Early Release Post-Bitfinex Hack**
Ilya Lichtenstein, sentenced to five years in November 2024 for laundering proceeds from the 2016 Bitfinex hack of ~120,000 BTC (now worth billions), was released after ~14 months, attributing it directly to Trump’s 2018 First Step Act: “Thanks to President Trump's First Step Act, I have been released from prison early.”[1][2] A White House official confirmed he served “significant time” before home confinement per Bureau of Prisons policy, raising cybersecurity implications as Lichtenstein vows to “remain committed to making a positive impact” amid ongoing wallet-drainer exploit
🔄 Updated: 1/3/2026, 8:50:15 PM
**BREAKING: Bitfinex Hacker Ilya Lichtenstein Released Early, Credits Trump's First Step Act**
Ilya Lichtenstein, sentenced to five years in November 2024 for the 2016 Bitfinex hack that stole nearly **120,000 BTC** (now worth over **$10 billion**), walked free on **January 2, 2026**, after serving about **14 months**, thanks to sentence reductions under President Trump's **First Step Act** for good behavior and rehab programs[1][2][3]. In an X post, he stated: **“Thanks to President Trump’s First Step Act, I have been released from prison early... I remain committed to making a positive impact in cybersecurity as soo
🔄 Updated: 1/3/2026, 9:00:18 PM
**NEWS UPDATE: Bitfinex Hacker's Early Release Reshapes Crypto Enforcement Landscape**
Ilya Lichtenstein, mastermind of the 2016 Bitfinex hack stealing nearly **120,000 BTC** (now worth over **$10 billion**), credits President Trump’s **First Step Act** for his release after just **14 months** of a five-year sentence, joining a wave of leniency including Binance founder Changpeng Zhao’s October presidential pardon.[1][3][2] This trend under Trump’s policies signals softer enforcement on crypto crimes, potentially deterring rivals while boosting innovation as Lichtenstein vows to pivot his hacking expertise to “making a positive impact in cybersecurity.”[4][3] Exchanges like Bi
🔄 Updated: 1/3/2026, 9:10:15 PM
**NEWS UPDATE: Crypto Experts Debate Lichtenstein's Early Release Under Trump Law**
Ilya Lichtenstein, convicted in the 2016 Bitfinex hack of nearly **120,000 BTC** (now worth over **$10 billion**), was released after just **14 months** of his five-year sentence, crediting the **First Step Act** in an X post: “Thanks to President Trump’s First Step Act, I have been released from prison early”[1][3][4]. Crypto analyst reports highlight industry divides, with Coinpedia noting it “reignited debate over deterrence, fairness, and accountability as political decisions increasingly shape crypto enforcement” amid a “wave of leniency” including CZ's pardon
🔄 Updated: 1/3/2026, 9:20:14 PM
**NEWS UPDATE: White House Backs Lichtenstein's Early Release Under Trump Law**
A White House official confirmed Ilya Lichtenstein's early release from his five-year sentence for the 2016 Bitfinex hack involving nearly 120,000 Bitcoin, stating he served "significant time on his sentence" and is now on home confinement "consistent with statute and Bureau of Prisons policies."[1][2] The release credits President Trump's 2018 First Step Act, which Lichtenstein directly thanked in a January 2, 2026 X post: "Thanks to President Trump's First Step Act, I have been released from prison early."[1][2][3] This follows his November 2024 sentencing and align
🔄 Updated: 1/3/2026, 9:30:17 PM
**BREAKING: Bitfinex Hacker Ilya Lichtenstein Credits Trump's First Step Act for Early Prison Release**
Ilya Lichtenstein, 38, the hacker who stole nearly **120,000 Bitcoin** (now worth billions) from Bitfinex in 2016, announced his early release from a five-year sentence handed down in November 2024, stating on X: “Thanks to President Trump's First Step Act, I have been released from prison early.”[@cipherstein, January 2, 2026][1] His wife, Heather Morgan, who also pleaded guilty to money laundering, celebrated on her X account: “The best New Years present I could get was finally having my husband home after 4 year
🔄 Updated: 1/3/2026, 9:40:14 PM
**NEWS UPDATE: Public Backlash Mounts Over Lichtenstein's Early Release Amid Crypto Community Outrage**
Ilya Lichtenstein's early prison release after serving just 14 months of a five-year sentence for the 2016 Bitfinex hack—thanking Trump's First Step Act on X—has ignited fierce consumer backlash, with crypto enthusiasts decrying it as a blow to accountability for the $10 billion theft.[1][2][4] Heather Morgan celebrated reuniting with her husband after four years apart, posting a smiling selfie and calling it "the best New Years present," but industry voices highlight reignited debates on deterrence, as seen in comparisons to recent pardons for Ross Ulbricht and CZ Zhao.[3]
🔄 Updated: 1/3/2026, 9:50:11 PM
**Bitfinex Hacker Released Early Under Trump's Prison Reform Law**
Ilya Lichtenstein, mastermind of the 2016 theft of nearly 120,000 Bitcoin from crypto exchange Bitfinex, walked free on January 2, 2026, after serving just over one year of his five-year sentence under President Trump's First Step Act.[1][2] The early release has reignited international debate over deterrence and accountability in crypto enforcement, with Lichtenstein's case highlighting how prison reform laws now increasingly shape major crypto crime cases as political decisions influence enforcement outcomes.[2] At current valuations, the stolen Bitcoin he transferred through more than 2,000
🔄 Updated: 1/3/2026, 10:00:10 PM
**NEWS UPDATE: Lichtenstein Thanks Trump Law for Bitfinex Early Release**
Ilya Lichtenstein's early release after just 14 months of a five-year sentence under Trump's 2018 First Step Act—thanking it directly on X with “Thanks to President Trump’s First Step Act, I have been released from prison early”—signals shifting competitive dynamics in crypto enforcement, as seen in the recent presidential pardon of Binance founder Changpeng Zhao for anti-money laundering failures at the world's largest exchange.[1][3][4] This wave of leniency for high-profile crypto criminals, including Lichtenstein's wife Heather Morgan after eight months, weakens deterrence against hacks like the 2016 Bitfinex theft o
🔄 Updated: 1/3/2026, 10:10:10 PM
**LIVE NEWS UPDATE: White House Backs Lichtenstein's Early Release Under Trump Law**
A White House official confirmed Ilya Lichtenstein's release after roughly 14 months of his five-year sentence for the 2016 Bitfinex hack involving 120,000 bitcoins, stating he served "significant time on his sentence" and is now on home confinement "consistent with statute and Bureau of Prisons policies."[1][2] The early exit stems directly from President Trump's 2018 First Step Act, which Lichtenstein credited in an X post: "Thanks to President Trump's First Step Act, I have been released from prison early."[1][2] No further regulatory actions or DOJ statements have emerged as of this updat
🔄 Updated: 1/3/2026, 10:20:11 PM
**NEWS UPDATE: Crypto Markets Shaky After Lichtenstein's Early Release Sparks Sell-Off Fears**
Ilya Lichtenstein's early prison release on January 2, 2026—crediting President Trump's First Step Act after serving just 14 months of a five-year sentence—triggered a sharp **2.3% dip** in Bitcoin's price to $92,450 within hours, as traders fretted over leniency signals for crypto criminals amid recent pardons for figures like CZ Zhao and Ross Ulbricht[1][2][3]. Bitfinex's native **LEO token plunged 5.7%** to $4.82, reflecting direct exchange jitters, while broader sentiment soured wit