The post Bitfinex Hacker Ilya Lichtenstein Released Early from Prison Under Trump’s First Step Act appeared on BitcoinEthereumNews.com.

Ilya Lichtenstein, the mastermind behind one of the largest cryptocurrency thefts in history, walked free from federal prison on January 2, 2026. The 38-year-old hacker was released early after serving just over a year of his five-year sentence, crediting President Donald Trump’s First Step Act for his freedom. Lichtenstein announced his release on X (formerly Twitter), stating: “Thanks to President Trump’s First Step Act, I have been released from prison early. I remain committed to making a positive impact in cybersecurity as soon as I can.” The $10 Billion Bitfinex Heist In August 2016, Lichtenstein orchestrated a sophisticated attack on Bitfinex, a cryptocurrency exchange based in Hong Kong. Using advanced hacking tools, he breached the exchange’s network and authorized over 2,000 fraudulent transactions. The attack drained 119,754 Bitcoin from customer wallets. At the time of the theft, the stolen Bitcoin was worth approximately $72 million. However, as cryptocurrency values surged over the years, the stolen funds appreciated to $4.5 billion by the time of Lichtenstein’s arrest in February 2022. Today, those same Bitcoin are valued at over $10 billion. Source: @cipherstein After stealing the funds, Lichtenstein deleted access credentials and log files from Bitfinex’s systems to cover his tracks. He then enlisted his wife, Heather Morgan, to help launder the stolen cryptocurrency through an elaborate scheme that lasted years. Complex Money Laundering Operation The couple used sophisticated techniques to hide the stolen Bitcoin’s origins. They created fake identities to open accounts on darknet markets like AlphaBay and cryptocurrency exchanges. They also used mixing services including Bitcoin Fog, Helix, and ChipMixer to obscure the trail of transactions. Other laundering methods included converting Bitcoin to different cryptocurrencies in a practice called “chain hopping,” using U.S. business accounts to appear legitimate, and even purchasing gold coins that Morgan buried for safekeeping. The couple…

---

Filed under: News - @ January 2, 2026 9:22 pm