TL;DR
Ilya Lichtenstein, who pleaded guilty to money-laundering linked to the 2016 Bitfinex theft of about 120,000 bitcoins, has been released after roughly 14 months behind bars and placed on home confinement. A White House official and Lichtenstein himself attributed the early release to the First Step Act; his wife Heather Morgan, who also pleaded guilty, had earlier been released after about nine months.
What happened
Ilya Lichtenstein, a defendant in the 2016 Bitfinex breach that involved roughly 120,000 bitcoins, has been released from federal prison after serving about 14 months of a five-year sentence. Lichtenstein pleaded guilty in August 2023 to money-laundering charges tied to the theft; he and his wife, Heather Morgan (also known as Razzlekhan), were arrested in February 2022. Morgan pleaded guilty as well and received an 18-month sentence, serving about nine months before her earlier release. Lichtenstein posted on X thanking President Trump’s First Step Act for enabling his early release and said he aims to make a positive impact in cybersecurity. A White House official confirmed to The Register that he served “significant time” and has been placed on home confinement, citing consistency with statute and Bureau of Prisons policies. Netflix released a 2024 documentary about the case; any follow-up coverage was not confirmed in the source.
Why it matters
- Demonstrates how the First Step Act can affect federal prison terms and early release decisions.
- Highlights continued public interest in a high-profile crypto theft and its legal aftermath.
- Raises questions about post-release supervision, potential restitution, and future employment for those convicted in major cybercrimes.
- Adds context to ongoing debates about sentencing, prison reform, and consistency in applying early-release policies.
Key facts
- The theft involved about 120,000 bitcoins from the Hong Kong-based Bitfinex exchange in 2016.
- Ilya Lichtenstein and Heather Morgan were arrested in February 2022.
- Both pleaded guilty in August 2023 to money-laundering charges related to the Bitfinex theft.
- Lichtenstein was sentenced to five years and served roughly 14 months before early release.
- Morgan was sentenced to 18 months and served about nine months before her earlier release.
- Lichtenstein posted on X crediting the First Step Act for his release and said he plans to work in cybersecurity.
- A White House official told The Register he served “significant time” and has been placed on home confinement, consistent with statute and Bureau of Prisons policies.
- Netflix released a 2024 documentary about the Bitfinex case titled Biggest Heist Ever.
What to watch next
- Whether Lichtenstein resumes work in cybersecurity after home confinement — not confirmed in the source.
- If federal authorities or courts impose additional conditions such as restitution or monitoring — not confirmed in the source.
- Whether Netflix or other media will produce further documentary coverage of the case — not confirmed in the source.
Quick glossary
- First Step Act: A 2018 U.S. federal law aimed at criminal justice reform, including provisions that can affect prison sentences and early release eligibility.
- Money laundering: The process of concealing the origins of illegally obtained funds to make them appear legitimate.
- Home confinement: A form of supervision where an individual serves part or all of their sentence at home under court or Bureau of Prisons conditions.
- Plea deal / guilty plea: An agreement in which a defendant admits guilt to some or all charges, often in exchange for a reduced sentence or other concessions.
- Bitcoin: A decentralized digital currency that operates without a central bank, transferred via a distributed ledger called a blockchain.
Reader FAQ
Why was Ilya Lichtenstein released early?
He and a White House official cited the First Step Act; the official said he served significant time and was moved to home confinement.
How many bitcoins were involved in the Bitfinex theft?
About 120,000 bitcoins were linked to the 2016 theft.
What sentences did the couple receive and how long did they serve?
Lichtenstein was sentenced to five years and served roughly 14 months; Morgan received an 18-month sentence and served about nine months.
Is there a Netflix follow-up documentary coming?
Not confirmed in the source.
CYBER-CRIME Bitfinex crypto thief who was serving five years thanks Trump for early release Netflix documentary part 2 in the works? Jessica Lyons Fri 2 Jan 2026 // 20:22 UTC Ilya Lichtenstein, who pleaded…
Sources
- Bitfinex crypto thief who was serving five years thanks Trump for early release
- “Thanks to Trump's Law”: $4.5B Bitcoin Hacker Credits …
- Billion-dollar Bitcoin hacker Ilya Lichtenstein thanks Trump …
- Ilya Lichtenstein credits Trump's First Step Act for early …
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