The post The Bitfinex Hacker Is Out and His Case May Change Crypto Justice appeared on BitcoinEthereumNews.com.

Ilya Lichtenstein, who was convicted for his role in laundering Bitcoin stolen during the 2016 Bitfinex hack, has been released from prison earlier than expected. His release took place on January 2, 2026, several years before the completion of his original sentence. Lichtenstein credited his early release to provisions under the First Step Act, a criminal justice reform law signed in 2018, which allows sentence reductions for inmates who participate in rehabilitation programs and demonstrate good conduct. How the First Step Act Led to an Early Release Lichtenstein was arrested in February 2022 alongside his wife, Heather Morgan, after US authorities traced nearly 120,000 BTC stolen from Bitfinex. At the time of the arrest, the stolen Bitcoin was valued at approximately $4.5 billion, making it one of the largest cryptocurrency seizures in US history. In November 2024, Lichtenstein was sentenced to five years in prison after pleading guilty to money laundering conspiracy. However, according to his statement following release, his participation in rehabilitation and educational programs made him eligible for sentence reduction under the First Step Act. From a Mid-Market Bitcoin Era to a Multi-Trillion-Dollar Asset When the Bitfinex hack occurred in August 2016, Bitcoin was trading at roughly $600–$650 per coin. At those prices, the 120,000 BTC stolen during the breach were valued at approximately $72–$78 million, a substantial amount at the time but within a far smaller and less developed crypto market. Nearly a decade later, Bitcoin trades at levels that fundamentally reshape the historical significance of the incident. With Bitcoin priced around $90,000 in early 2026, the same 120,000 BTC would now be worth approximately $10.8 billion, representing an increase of more than 140 times compared with its estimated value at the time of the hack. Seven-day Bitcoin price performance. Source: CoinCodex Cooperation With Authorities Played a…

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Filed under: News - @ January 3, 2026 5:03 am