The Bitfinex hacker is out of jail after a year thanks to President Trump’s First Step Act

Ilya Lichtenstein, the person behind the 2016 Bitfinex Bitcoin hack, was released early from US federal prison on January 2, 2026, after serving just one year of a five-year sentence.

The release was granted after a sentence reduction based on Donald Trump’s First Step Act.

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The hacker who stole over $10 billion in Bitcoin

Lichtenstein was convicted in November 2024 of conspiracy to launder money, following his involvement in the theft of approximately 120,000 BTC from the Bitfinex platform.

Today, the value of this money is more than $ 10 billion, although most of the assets were later confiscated by the US authorities.

Thanks to President Trump’s First Step Act, I was 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

Federal records indicate Lichtenstein has met the conditions Time credits and early release provisions Under the First Step Act.

This law gives prisoners the opportunity to shorten their prison terms by participating in approved rehabilitation and education programs, particularly in cases of… Non-violent crimes.

As a result, Lichtenstein was transferred from federal custody significantly ahead of schedule.

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Donald Trump passed the First Step Act in 2018, which overhauled federal prison and sentencing policies. The law expanded access to time-earned credits, increased judges’ flexibility in sentencing, and focused on rehabilitation rather than lengthy prison terms.

The law only applies to federal prisoners, not state prisoners. Lichtenstein’s conviction fell squarely within this scope.

Liechtenstein’s role in the Bitfinex hack

Court documents and Lichtenstein’s guilty plea reveal that he himself planned and carried out the Bitfinex hack.

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He exploited internal authorization systems, initiated more than 2,000 fraudulent transactions, and transferred Bitcoin to wallets he controlled.

The money laundering phase continued for years. His wife, Heather Morgan, was convicted of helping hide the assets. No evidence has emerged to indicate the involvement of other hackers in this hack.

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Will the attack on digital currencies continue unpunished under Trump?

The liberation of Liechtenstein followed a broader pattern. A year after Trump returned to office, high-profile crypto cases have seen a pardon.

These cases include Ross Ulbricht, who was pardoned after a decade in prison, and Changping Zhao, who received a pardon after pleading guilty to anti-money laundering violations.

Together, these movements contributed to strengthening expectations on the implementation of laws.

On the part of the US crypto community, these decisions feed the “crime is legal” narrative. Critics argue that repeated early releases and pardons jeopardize deterrence.

Supporters claim that rehabilitation and proportionate sentences are more important than symbolic punishment.

The early release of Liechtenstein remains to date the latest flash point in this controversy.