Bitfinex Hacker Ilya Lichtenstein Released Early: The Role of Trump's First Step Act in 2026

A hacker who stole over $10 billion worth of Bitcoin is already a free man after serving just 14 months. Ilya Lichtenstein, the mastermind behind the 2016Bitfinex breach, was released from prison early despite a five-year sentence.

Early Release via Trump's First Step Act

Taking to X (formerly Twitter), Lichtenstein credited President Donald Trump's First Step Act for his shortened stay behind bars. The 2018 bipartisan law allows inmates to earn credits toward early release by participating in recidivism reduction programs. "I remain committed to making a positive impact in cybersecurity as soon as I can," Lichtenstein posted following his release.

His wife, Heather "Razzlekhan" Morgan, who played a supporting role in the laundering scheme, was released in October 2025 after serving roughly eight months of her 18-month sentence. The couple's haul of 119,754 BTC was worth roughly $71 million at the time of the hack but has ballooned in value as Bitcoin holds above the $90,000 mark.

Asset Recovery and Market Implications

U.S. authorities successfully recovered approximately 94,000 BTC of the stolen funds. In January 2025, prosecutors moved to return these assets to Bitfinex. The remaining 25,000 BTC, which Lichtenstein converted into gold coins and other altcoins, has mostly been accounted for by the government.