Bitfinex hacker Ilya Lichtenstein, who stole $10.8 billion worth of Bitcoin, walks free, credits Trump for early release

One of the most notorious figures in crypto crime has been released from prison years early.

Ilya Lichtenstein, the Russian-U.S. national who hacked crypto exchange Bitfinex and helped steal nearly 120,000 bitcoin, said he was released early under federal prison reform signed into law by President Donald Trump. At current prices, the stolen Bitcoin is worth roughly $10.8 billion.

Late Thursday night, Lichtenstein posted on his verified X account: “Thanks to President Trump’s First Step Act, I have been released from prison early.”

“I remain committed to making a positive impact in cybersecurity as soon as I can,” he wrote. “To the supporters, thank you for everything. To the haters, I look forward to proving you wrong.”

Thanks to President Trump’s First Step Act, I have been released from prison early.
I remain committed to making a positive impact in cybersecurity as soon as I can.

To the supporters, thank you for everything.
To the haters, I look forward to proving you wrong.

— Ilya Lichtenstein (@cipherstein) January 2, 2026

A Trump administration official confirmed Friday morning that Lichtenstein “has served significant time on his sentence and is currently on home confinement consistent with statute and Bureau of Prisons policies,” CNBC reported.

Lichtenstein, 38, had been sentenced in November 2024 to five years in prison after pleading guilty to a money laundering conspiracy charge tied to one of the largest cryptocurrency thefts on record. His sentence included credit for time served following his 2022 arrest.

Federal inmate records still list his projected release date as February 9, reflecting the mechanics of home confinement under the law rather than the completion of his whole sentence. The Bureau of Prisons did not respond to a request for comment.

His release adds a surprising chapter to a case that TechStartups first covered in early 2022, after federal agents arrested Lichtenstein and his wife, Heather Morgan, in Manhattan.

The arrests followed years of tracing funds stolen during the August 2016 Bitfinex hack, an incident so large it sent bitcoin prices tumbling nearly 20% at the time. Prosecutors said hackers breached the exchange’s systems and initiated more than 2,000 unauthorized transactions, funneling 119,754 bitcoin into wallets controlled by Lichtenstein.

The U.S. Department of Justice later announced it had seized more than 94,000 bitcoin linked to the hack, valued at about $3.6 billion at the time of recovery. The agency said the total stolen bitcoin is now worth roughly $4.5 billion, making it one of the largest financial seizures in U.S. law enforcement history.

Deputy Attorney General Lisa Monaco described the seizure as a turning point, citing improved blockchain tracing methods that enabled investigators to trace digital money over years of attempted laundering.

Morgan, who pleaded guilty to helping launder the stolen funds, reacted quickly to her husband’s release. “The best New Year’s present I could get was finally having my husband home after 4 years of being apart,” she wrote on X, alongside a smiling selfie of the couple.

The best New Years present I could get was finally having my husband home after 4 years of being apart. 💜🙏🪬 https://t.co/toUJ0Bz70h pic.twitter.com/plsnktmJ5l

— Heather “Razzlekhan” Morgan (@HeatherReyhan) January 2, 2026

Morgan, 35, who performs as a rapper under the name “Razzlekhan,” had been sentenced to 18 months in prison. In October, she posted a video announcing her own early release, thanking Trump for shortening her sentence.

Booking photos for Heather Morgan and Ilya Lichtenstein. Courtesy: Alexandria Adult Detention Center

A Pattern Emerges as Trump Steps Into High-Profile Crypto Felony Cases

President Donald Trump signed the First Step Act in 2018 during his first term. The law reshaped federal sentencing and expanded pathways to early release through earned time credits and home confinement. The White House has not indicated any personal involvement by Trump in either Ilya Lichtenstein’s or Heather Morgan’s release.

Lichtenstein’s early release places him alongside other prominent figures tied to crypto and cybercrime who have benefited from Trump-era clemency and prison reform. Since returning to the office, Trump has moved quickly to erase or shorten sentences in cases that once defined the government’s toughest posture on digital crime. Those actions include pardoning Ross Ulbricht, the founder of the Silk Road, and Changpeng Zhao, the former head of Binance.

The timing has drawn attention. Trump’s recent actions indicate a broader shift in how the administration approaches punishment, reform, and redemption in the crypto economy, particularly in cases involving large-scale financial crimes involving digital assets.

Lichtenstein’s early release closes one chapter of a saga that reshaped how governments pursue crypto crime. It also opens a new debate over accountability, rehabilitation, and how far prison reform should extend when the offenses involve billions of dollars in cryptocurrency.

What happens next for one of crypto’s most notorious hackers remains an open question.