Ilya Lichtenstein, the person behind the 2016 Bitfinex bitcoin hack, has been launched early from US federal jail on January 2, 2026, after serving roughly one 12 months of a five-year sentence.
The discharge was granted following sentence reductions tied to Donald Trump’s First Step Act.
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The Hacker Who Stole Over $10 Billion in Bitcoin
Lichtenstein was sentenced in November 2024 for conspiracy to commit cash laundering, linked to almost 120,000 BTC stolen from the Bitfinex alternate.
At right this moment’s costs, that haul is value greater than $10 billion, although many of the funds had been later seized by US authorities.
Federal data point out Lichtenstein certified for time credit and early launch provisions beneath the First Step Act.
Briefly, the regulation permits inmates to shorten custodial sentences by collaborating in permitted rehabilitation and teaching programs, significantly for non-violent offenses.
In consequence, Lichtenstein was transferred out of federal custody properly forward of schedule.
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Signed in 2018 by Donald Trump, the First Step Act reformed federal sentencing and jail coverage. It expanded entry to earned time credit, elevated judicial discretion, and emphasised rehabilitation over extended incarceration.
Importantly, it applies solely to federal inmates, not state prisoners. Lichtenstein’s conviction fell squarely inside that scope.
Lichtenstein’s function within the Bitfinex hack
Courtroom filings and Lichtenstein’s personal responsible plea present he deliberate and executed the Bitfinex breach himself.
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He exploited inside authorization programs, initiated greater than 2,000 fraudulent transactions, and moved the bitcoin into wallets he managed.
The laundering part lasted years. His spouse, Heather Morgan, was convicted for aiding in concealing the funds. No proof factors to different hackers concerned within the intrusion.
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Crypto Offense Continues to Go Unpunished Beneath Trump?
Lichtenstein’s launch follows a broader sample. One 12 months into Trump’s return to workplace, high-profile crypto circumstances have seen clemency.
These embody Ross Ulbricht, pardoned after a decade in jail, and Changpeng Zhao, who obtained a pardon after pleading responsible to AML violations.
Collectively, these strikes have reshaped expectations round enforcement.
Inside elements of the US crypto neighborhood, these selections are fueling a “crime is authorized” narrative. Critics argue repeated early releases and pardons danger undermining deterrence.
Nevertheless, supporters counter that rehabilitation and proportional sentencing matter greater than symbolic punishment.
For now, Lichtenstein’s early launch stands as the most recent flashpoint in that debate.