Ilya Lichtenstein, known for his role in one of the largest Bitcoin
thefts ever recorded, has been released from prison after serving a little over a year of his five-year sentence.
His early release was made possible through the First Step Act, a criminal justice reform signed during President Donald Trump’s first term.
In a post on X, Lichtenstein wrote, “Thanks to President Trump’s First Step Act, I have been released from prison early”. He also said he hopes to return to cybersecurity work and “make a positive impact” soon.
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Lichtenstein was sentenced in November 2024 after admitting to laundering money connected to the 2016 Bitfinex
$369.25M
hack, where nearly 120,000 Bitcoin were stolen.
His wife, Heather Morgan, described the release as the “best New Year’s present” after years apart.
Morgan, a former rapper who performed as “Razzlekhan”, was also convicted for helping move the stolen funds. She served 18 months in prison and announced her own early release in October.
The couple was arrested in 2022 after a long investigation that led to the recovery of a large portion of the missing cryptocurrency.
When sentenced, Lichtenstein admitted he was behind the 2016 hack and had laundered thousands of Bitcoin. He said he explained that his wife “was in no way involved in the hack itself” and did not know about it for years.
Meanwhile, Caroline Ellison, former CEO of Alameda Research, was transferred from prison to community confinement. What did the Bureau of Prisons records say? Read the full story.
