Ilya Lichtenstein, the mastermind behind the 2016 Bitfinex hack, has been granted early release from federal prison, crediting the First Step Act signed by former President Donald Trump. In a social media post, Lichtenstein announced his release and stated his commitment to making a positive impact in cybersecurity upon re-entering society.
His release is scheduled for February 9, 2026, according to Federal Bureau of Prisons records. Lichtenstein was sentenced in 2024 to a five-year term after pleading guilty to charges of conspiring to launder money and defraud U.S. authorities in connection with the theft of tens of thousands of Bitcoin from the Bitfinex exchange, valued in the billions of dollars.
His wife, Heather Morgan (also known as rapper "Razzlekhan"), who was implicated in the laundering scheme, was released in October 2025 after serving approximately eight months of an 18-month sentence. She also attributed her early release to the First Step Act, though the White House clarified it had no direct role in her judicial outcome.
The couple was arrested in 2022, and their case led to the largest cryptocurrency asset recovery in U.S. law enforcement history, with authorities seizing approximately $4 billion tied to the hack. Lichtenstein has claimed he acted alone in the hack and has cooperated with federal agencies in asset recovery efforts, which may have contributed to his eligibility for sentence reduction under the reform law.
This development occurs amid a series of clemency actions by former President Trump toward figures in the cryptocurrency sector, including pardons for Binance founder Changpeng Zhao and Silk Road founder Ross Ulbricht.
