Bitfinex Hacker Ilya Lichtenstein Freed Early via First Step

Ilya Lichtenstein, tied to the 2016 Bitfinex hack, released after 14 months of a five‑year sentence—credits Trump’s First Step Act; most stolen BTC recovered and reaction online was mixed.

  • Ilya Lichtenstein was released from prison after serving 14 months of a five-year sentence tied to the 2016 Bitfinex hack.
  • He credited President Donald Trump’s First Step Act for his early release and posted about it on X.
  • The 2016 hack stole 119,754 BTC, worth about $71 million at the time and more than $10 billion at current prices; authorities recovered roughly 94,000 BTC.
  • Lichtenstein pleaded guilty to money laundering conspiracy, converted about 25,000 BTC into other assets, and the majority of those funds were recovered, according to a TRM report.
  • Public reaction on social media was mixed, with both congratulations and criticism from onchain investigators and other users on X.

Ilya Lichtenstein, who pleaded guilty to charges tied to the 2016 Bitfinex hack and was sentenced to five years in prison in November 2024, was released after serving 14 months. He announced his release on X and said he plans to work in Cybersecurity going forward.

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Lichtenstein credited President Donald Trump’s First Step Act for his early release and posted on X, “Thanks to President [Donald] Trump’s First Step Act, I have been released from prison early,” linking to his message on the platform. He also thanked supporters and addressed critics, writing “I look forward to proving you wrong.”

Lichtenstein and his wife, rapper Heather “Razzlekhan” Morgan, were arrested in February 2022. Morgan received an 18-month sentence and was released in October after serving roughly eight months.

The August 2016 hack took 119,754 BTC, valued at about $71 million at the time and more than $10 billion at current prices, and authorities recovered roughly 94,000 BTC. U.S. prosecutors later filed a motion to return the recovered BTC to Bitfinex.

Lichtenstein admitted to the hack and pleaded guilty to a money laundering conspiracy charge. He converted roughly 25,000 BTC into other cryptocurrencies and physical Gold coins, and the government recovered most of those assets, according to a TRM report.

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Reactions on X were mixed: an onchain investigator who goes by Specter posted a meme saying “crime is legal”, while other users asked pointed questions such as how much did you pay? and “Where’s the 120,000 stolen from Bitfinex?”. Another post by Specter is available here.

Lichtenstein’s release comes amid broader attention on President Trump’s use of executive clemency in crypto-related cases. Between January and October, Mr. Trump pardoned figures including Ross Ulbricht, Arthur Hayes, three Bitmex cofounders, and Changpeng “CZ” Zhao, although Lichtenstein was not pardoned.

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