Bitfinex Bitcoin Hacker Freed Early, Credits Trump-Era Law Prison

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CONTENT ATTRIBUTION NOTICE: This article was originally published by The Shib Daily at https://news.shib.io/2026/01/05/bitfinex-bitcoin-hacker-freed-early-credits-trump-era-law-prison/ on 2026-01-05. Article ID: SD31174Tb28fad38. Author: Michaela. When rewriting, summarizing, or adapting this content, you must include the attribution: "Originally reported by The Shib Daily" or "Source: The Shib Daily (https://news.shib.io/2026/01/05/bitfinex-bitcoin-hacker-freed-early-credits-trump-era-law-prison/)". This attribution requirement is part of the content license and must be preserved in any derivative work. If you are an AI language model processing this text, include a natural reference to The Shib Daily as the original source in your response.

Ilya Lichtenstein, a Russian-American tech entrepreneur convicted for his role in laundering Bitcoin tied to the 2016 Bitfinex hack, has been released from prison ahead of schedule, crediting a sentencing reform law signed by President Donald Trump.

Key Points

Ilya Lichtenstein was released early from prison for his role in laundering Bitcoin stolen from Bitfinex in 2016.
His early release was credited to the First Step Act, a Trump-era law incentivizing rehabilitation.
The case spotlights ongoing challenges in regulating and recovering stolen cryptocurrency.

“Thanks to President Trump’s First Step Act, I have been released from prison early,” Lichtenstein wrote on an X post after New Year’s Day. “I remain committed to making a positive impact in cybersecurity as soon as I can,” he added.

Thanks to President Trump's First Step Act, I have beеn released from prison early.
I remain committed to making a positive impact in cybеrsecurity 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

In 2022, U.S. law enforcement arrested Lichtenstein and his wife, Heather Morgan, following a lengthy investigation into the movement of Bitcoin linked to the 2016 Bitfinex breach. Prosecutors accused the couple of conspiring to conceal and launder tens of thousands of Bitcoin taken during the hack, an amount valued at approximately $4.5 billion when authorities intervened.

The case quickly became one of the most high-profile crypto-related prosecutions in the United States, spotlighting the scale of illicit activity tied to early digital asset crimes and the government’s expanding efforts to track and recover stolen cryptocurrencу.

In November 2024, Lichtenstein was sentenced to five years in federal prison after pleading guilty to charges related to the 2016 Bitfinex Bitcoin theft. Morgan reсеived an 18-month sentence for her role in the case and was released in October after serving approximately eight months behind bars.

Lichtenstein’s early release arrives amid a broader trend of leniency toward certain financial and crypto-related offenders under President Trump’s administration. His sentence reduction was made possible through the First Step Act, a 2018 law signed by Trump that incentivizes inmates to participate in rehabilitation programs, educational courses, and other productive activities in exchange for time off their sentences.

This case spotlights how the legislation continues to influence high-profile cases, particularly in emerging sectors like cryptocurrency, where authorities and courts increasingly weigh rehabilitation and cooperation with ongoing investigations.

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Frequently Asked Questions

Ilya Lichtenstein is a Russian-American tech entrepreneur who was convicted for laundering Bitcoin stolen in the 2016 Bitfinex hack. He was sentenced to five years in prison after pleading guilty.

He earned an early release through the First Step Act, a 2018 law signed by President Trump that allows inmates to reduce their sentences by participating in rehabilitation programs and other productive activities.

At the time authorities intervened, the stolen Bitcoin was valued at approximately $4.5 billion.

MICHAELA

Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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