TL;DR
Ilya Lichtenstein, who pleaded guilty in connection with the Bitfinex hack, posted that he was released early “thanks to President Trump’s First Step Act.” The Department of Justice previously arrested Lichtenstein and his wife in 2022, seizing $3.6 billion in bitcoin; an administration official told CNBC he has served significant time and is on home confinement consistent with statutes and Bureau of Prisons policies.
What happened
Ilya Lichtenstein — who admitted involvement in the high-profile hack of crypto exchange Bitfinex and later pleaded guilty to money laundering charges — posted on X that he has been released early “thanks to President Trump’s First Step Act.” Lichtenstein was arrested in 2022 alongside his wife, Heather Morgan, in a case that led to the seizure of about $3.6 billion in bitcoin. He was sentenced to five years in prison after his plea. In his post he said he remains committed to contributing to cybersecurity, thanked supporters, and addressed critics. It is not clear from available reporting whether the Trump administration played a direct role in the release. An administration official told CNBC that Lichtenstein "has served significant time on his sentence and is currently on home confinement consistent with statute and Bureau of Prisons policies." The couple was also featured in a Netflix documentary about the theft.
Why it matters
- A high-profile early release in a major crypto theft case raises questions about how criminal-sentencing reforms are applied to cybercrime.
- The outcome may influence public perception of accountability for digital asset theft and the effectiveness of federal recovery efforts.
- Officials’ statements about home confinement versus a politically driven intervention underscore the need for clarity from federal authorities.
- The case intersects criminal law, prison reform policy and ongoing discussions around security in the cryptocurrency ecosystem.
Key facts
- Lichtenstein pleaded guilty to money laundering tied to the Bitfinex hack.
- He and his wife Heather Morgan were arrested by the Department of Justice in 2022.
- Authorities seized approximately $3.6 billion worth of bitcoin connected to the case.
- Lichtenstein was sentenced to five years in prison after his guilty plea.
- He posted on X saying he was released early "thanks to President Trump’s First Step Act."
- The First Step Act is a prison reform law passed during President Trump's first term.
- An administration official told CNBC Lichtenstein "has served significant time" and is on home confinement consistent with statute and Bureau of Prisons policies.
- The couple was featured in a Netflix documentary called "Biggest Heist Ever."
What to watch next
- Whether federal authorities or the Bureau of Prisons publish additional details clarifying Lichtenstein's status (not confirmed in the source).
- Any formal DOJ statements about the role of statutory release mechanisms like the First Step Act in this specific case (not confirmed in the source).
- Follow-up reporting on Heather Morgan’s sentence or confinement status and whether recovered assets remain under government control (not confirmed in the source).
Quick glossary
- First Step Act: A federal law passed in 2018 that enacted various criminal justice reforms, including changes to sentencing and prison programs aimed at reducing recidivism.
- Money laundering: The process of disguising the origins of proceeds from criminal activity so they appear to come from legitimate sources.
- Home confinement: A form of correctional supervision in which an individual serves a term of imprisonment at their residence under monitoring and conditions set by authorities.
- Bitfinex hack: A major security breach of the Bitfinex cryptocurrency exchange that resulted in the theft of a large amount of bitcoin; the incident prompted law enforcement investigations and asset seizures.
Reader FAQ
Was Ilya Lichtenstein released early because of President Trump?
Not confirmed in the source; Lichtenstein credited President Trump’s First Step Act in his post, but the source says it’s unclear whether the Trump administration directly played a role.
What was Lichtenstein convicted of?
He pleaded guilty to money laundering charges tied to the Bitfinex hack and was sentenced to five years in prison.
How much cryptocurrency did authorities recover?
The Department of Justice seized about $3.6 billion worth of bitcoin in connection with the case.
Is Lichtenstein currently in prison?
An administration official told CNBC he has served significant time and is on home confinement consistent with statute and Bureau of Prisons policies.
IN BRIEF Posted: 11:48 AM PST · January 3, 2026 IMAGE CREDITS: VICTOR HABBICK VISIONS/SCIENCE PHOTO LIBRARY / GETTY IMAGES Anthony Ha Bitfinex hacker Ilya Lichtenstein credits Trump for early…
Sources
- Bitfinex hacker Ilya Lichtenstein credits Trump for early release from prison
- Ilya Lichtenstein credits Trump's First Step Act for early …
- Billion-dollar Bitcoin hacker Ilya Lichtenstein thanks Trump …
- “Thanks to Trump's Law”: $4.5B Bitcoin Hacker Credits …
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