Ilya Lichtenstein, involved in the theft of approximately 119,756 BTC from Bitfinex, says he was released from prison earlier than expected thanks to the First Step Act, a law passed under Donald Trump. He only spent a little over a year behind bars, although he was sentenced to five years.
In brief
- Ilya Lichtenstein, involved in the theft of BTC from Bitfinex in 2016, announced his early release.
- He claims to have benefited from the First Step Act, a law signed under Donald Trump which allows sentence reductions
A quick exit, a law that was already hanging around
Ilya Lichtenstein, central figure in the bitcoin hack on Bitfinex in 2016, says he was released from prison early thanks to the First Step Act. This is a law signed under Donald Trump. Sentenced to five years, he only spent a little over a year behind bars before announcing his release on X.
In this tweet, he explicitly thanked the First Step Act. In the same message, he says he wants to have a positive impact on cybersecurity. It's a classic formula. But she also says that he is preparing for the sequel.
The First Step Act, passed in 2018, expanded access to sentence reductions through time credits and reentry programs. Clearly, it is not a presidential pardon that is at stake in this matter linked to bitcoin. Rather, it is a mechanism that can shorten a sentence if certain criteria are met.
According to a statement relayed by the press, Lichtenstein would not be free in the Hollywood sense of the term. However, he would be placed in home confinement, under Bureau of Prisons rules.
Bitfinex and Bitcoin, the heist that almost never closes
The case dates back to August 2016, when Bitfinex was siphoned off nearly 120,000 bitcoins. At the time, it was already huge. With the rise of bitcoin over the years, the figure has taken on an almost mythological dimension, as if the theft was growing retroactively.
In court documents, the picture is more technical and less romantic. The US Department of Justice describes more than 2,000 fraudulent transactions, then a methodical attempt to erase traces on the exchange's network. It's the work of a goldsmith, but a digital burglary version.
Then comes the most “crypto” part of the file, the one which looks like a user manual for a mixer. “Chain hopping”, fake accounts, mixing services, conversions into other assets… The DOJ even mentions exchanges of BTC for gold coins. As if the plan was to confuse the story until it was unreadable.
Razzlekhan, Netflix and the transformation of a criminal case into a public soap opera
In this story, there is also Heather Morgan, aka “Razzlekhan”. She was sentenced to 18 months, and she too spoke of early release. On the networks, the couple quickly resumed the pose of returning to life, with a staging that contrasts with the tone of a federal file.
Lichtenstein's early exit comes in a political climate where bitcoin is being scrutinized as an issue of influence. Trump, once again president, shone with very visible decisions. He granted a full and unconditional pardon to Ross Ulbricht, the founder of Silk Road, on January 21, 2025.
He also pardoned Changpeng Zhao, the founder of Binance, on October 23, 2025, according to the White House and Reuters. The gesture is symbolically heavy, because it affects a central figure in the industry. In the same spirit, Trump said he would look at the case of Keonne Rodriguez, co-founder of Samourai Wallet, floating the idea of possible clemency. Even without a decision, just talking about it acts as a signal. In crypto, signals sometimes matter as much as text.
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