TLDR

  • Ilya Lichtenstein served time for laundering 120,000 stolen Bitcoin from Bitfinex.
  • He was released early due to Trump’s First Step Act prison reform law.
  • His wife Heather Morgan also served time and was released early in 2023.
  • Lichtenstein was sentenced in 2024 but got credit for time served since 2022.

Ilya Lichtenstein, implicated in one of history’s largest cryptocurrency thefts, has been released from prison ahead of his scheduled term. Lichtenstein, convicted for laundering nearly 120,000 stolen bitcoin from Bitfinex, attributed his early release to the First Step Act, a prison reform initiative from the Trump administration. His wife and co-defendant, Heather Morgan, also celebrated his return, describing it as the best New Year’s gift after four years of separation.

Early Release Linked to First Step Act

Ilya Lichtenstein, the convicted hacker responsible for the theft of approximately 120,000 bitcoin from the Bitfinex exchange, has announced his early release from prison. He credited this development to the First Step Act, a bipartisan criminal justice reform law enacted by former President Donald Trump in 2018.

On Thursday evening, a post from Lichtenstein’s verified X (formerly Twitter) account stated, “Thanks to President Trump’s First Step Act, I have been released from prison early.” A former official from the Trump administration confirmed to CNBC that Lichtenstein is currently under home confinement, a status that aligns with the law and Bureau of Prisons regulations.

Lichtenstein, aged 38, received a five-year prison sentence in November 2024 after pleading guilty to money laundering conspiracy and admitting to the theft of billions of dollars in cryptocurrency. However, he had already been in custody since his arrest in February 2022, with this time credited towards his sentence.

Lichtenstein’s Statement and Future Plans

Lichtenstein has indicated his intention to re-enter the cybersecurity field in a responsible capacity. “I remain committed to making a positive impact in cybersecurity as soon as I can,” he stated in his post.

He also addressed both his supporters and detractors, writing, “To the supporters, thank you for everything. To the haters, I look forward to proving you wrong.” His legal team had not issued an official statement at the time of this report.

A check of the federal inmate locator still showed his official release date as February 9. However, the Bureau of Prisons has not provided confirmation, and no further details regarding the terms of his confinement have been released.

Heather Morgan Also Released Early

Heather Morgan, Lichtenstein’s wife, was also involved in the laundering of the stolen cryptocurrency. She pleaded guilty in the same case and was sentenced to 18 months in prison in 2024.

Morgan, who gained notoriety as a rapper known as “Razzlekhan” and often referred to herself as the “Crocodile of ,” shared her husband’s post on social media. “The best New Year’s present I could get was finally having my husband home after 4 years of being apart,” she wrote, accompanying her message with a selfie of the couple.

She began her prison sentence in February 2024 but posted a video in October claiming an early release. In the video, she thanked Trump and appeared in a bathtub, stating, “It is very good to be back, and I want to give a shout out to Papa Trump for making my 18-month sentence shorter.”

Background on the Bitfinex Hack and Sentencing

The 2016 Bitfinex crypto heist resulted in the disappearance of nearly 120,000 bitcoin, which would be valued at over $4 billion today. The couple was apprehended in 2022 after investigators traced the movement of the stolen funds and linked them to accounts controlled by Lichtenstein and Morgan.

Prosecutors identified Lichtenstein as the primary , while Morgan played a significant role in laundering the stolen cryptocurrency through a complex series of transactions and shell corporations. Both individuals agreed to forfeit a substantial portion of the assets that were recovered.

Their sentencing garnered considerable public attention due to the unusual combination of sophisticated crypto crime, elements of pop culture, and the social media presence of both individuals.