Ilya Lichtenstein, known for his role in the massive theft of nearly 120,000 bitcoins from the Bitfinex exchange, has been released from prison ahead of schedule. His early release is attributed to the First Step Act, a prison reform law enacted under former President Donald Trump.
On January 3, 2026, Lichtenstein took to his verified X account to express gratitude, stating, “Thanks to President Trump”s First Step Act, I have been released from prison early.” A source from the Trump administration confirmed to CNBC that Lichtenstein is currently under home confinement, aligning with the provisions of the law and the policies of the Bureau of Prisons.
At 38 years old, Lichtenstein was sentenced in November 2024 to a five-year term for his guilty plea to conspiracy related to money laundering and the admission of stealing billions in cryptocurrency. His time served since his arrest in February 2022 was factored into his sentence, enabling his early release.
In his announcement, Lichtenstein expressed a desire to re-enter the cybersecurity sector in a responsible capacity. He stated, “I remain committed to making a positive impact in cybersecurity as soon as I can.” He also addressed both supporters and critics, saying, “To the supporters, thank you for everything. To the haters, I look forward to proving you wrong.”
While the federal inmate locator indicated a formal release date of February 9, no official updates have been provided by the Bureau of Prisons regarding his confinement conditions.
Lichtenstein”s wife, Heather Morgan, also a co-conspirator in the laundering scheme, has similarly benefited from early release. Morgan, who gained notoriety as a rapper under the alias “Razzlekhan,” was sentenced to 18 months in 2024. She shared her joy on social media, stating, “The best New Year”s present I could get was finally having my husband home after 4 years of being apart.”
Both Lichtenstein and Morgan were arrested in 2022 as authorities tracked the stolen bitcoins, leading to their connection with the illicit funds. Prosecutors identified Lichtenstein as the main hacker while Morgan was instrumental in the complex laundering operations that followed the theft.
The Bitfinex hack, a significant event in the cryptocurrency world, resulted in the loss of bitcoins now valued at over $4 billion. The sentencing of Lichtenstein and Morgan drew considerable public attention due to the high-profile nature of their crimes and their engagement with social media.
