The Bitfinex Hacker Is Out and His Case May Change Crypto Justice
Ilya Lichtenstein, who was convicted for his role in laundering Bitcoin stolen during the 2016 Bitfinex hack, has been released from prison earlier than expected. His release took place on January 2, 2026, several years before the completion of his original sentence.
Lichtenstein credited his early release to provisions under the First Step Act, a criminal justice reform law signed in 2018, which allows sentence reductions for inmates who participate in rehabilitation programs and demonstrate good conduct.
How the First Step Act Led to an Early Release
Lichtenstein was arrested in February 2022 alongside his wife, Heather Morgan, after US authorities traced nearly 120,000 BTC stolen from Bitfinex. At the time of the arrest, the stolen…
