Bitfinex Hacker Ilya Lichtenstein Released Early; Credits Trump’s First Step Act
The architect of the $10B Bitfinex hack walks free after 4 years in total custody, citing the Trump-era First Step Act for his sentence reduction.
The Release
Ilya Lichtenstein, the self-confessed architect of the 2016 Bitfinex hack that drained 119,754 BTC, walked free from federal custody on January 2, 2026. In a statement posted to X, Lichtenstein confirmed his release to home confinement, explicitly crediting the First Step Act, a bipartisan prison reform bill signed by President Donald Trump in 2018.
The hacker served approximately four years of total custody on a five-year sentence handed down in November 2024. While the Bitcoin stolen is now valued at over $10.7 billion (BTC ~$89,950), Lichtenstein’s cooperation with authorities, including testifying against Bitcoin Fog operator Roman Sterlingov, likely factored into his eligibility for the act’s recidivism reduction credits.
The Math: Time Served vs. Sentence
Lichtenstein’s “one-year” prison stint is a technicality of federal sentencing math. Arrested in February 2022, he spent nearly three years in pre-trial detention before his sentencing. Federal judges routinely credit this time toward the final term. The remaining balance of his 60-month sentence was further reduced under the First Step Act, which allows non-violent offenders to earn up to 54 days of “good time” credit per year and additional reductions for participating in recidivism programming.
Institutional Context
This release distinguishes itself from the recent wave of executive clemency. Unlike the full pardons granted to Silk Road founder Ross Ulbricht or BitMEX’s Arthur Hayes, Lichtenstein’s exit was legislative, not executive. A Trump administration official confirmed to CNBC that the release was “consistent with statute and Bureau of Prisons policies,” distancing the White House from direct intervention while highlighting the legacy of the 2018 reform bill.
Lichtenstein’s wife and co-conspirator, Heather Morgan (aka “Razzlekhan”), was released in October 2025 after serving 8 months of her 18-month sentence. She posted a photo of the couple shortly after his release: “The best New Years present I could get was finally having my husband home after 4 years of being apart.”
