Bitcoin Hacker Ilya Lichtenstein Released Early Thanks to First Step Act
Ilya Lichtenstein, the mastermind behind one of the largest Bitcoin heists in history, has been released from prison after serving only a fraction of his five-year sentence. This unexpected turn of events is attributed to the First Step Act, a criminal justice reform law signed into effect during former President Donald Trump’s first term. The law, which aims to reduce recidivism and promote rehabilitation, has allowed Lichtenstein to regain his freedom sooner than anticipated.
Lichtenstein took to social media platform X to express his gratitude, stating, “Thanks to President Trump’s First Step Act, I was released from prison early.” He also reaffirmed his commitment to making a positive impact on cybersecurity, adding, “I remain committed to making a positive impact on cybersecurity as quickly as possible.” This statement comes after Lichtenstein pleaded guilty to a money laundering conspiracy related to the 2016 Bitfinex hack, in which nearly 120,000 Bitcoin (BTC) was stolen.
Background on the Bitfinex Hack and Its Aftermath
The Bitfinex hack, which occurred in 2016, was a significant event in the cryptocurrency space, resulting in the theft of a substantial amount of Bitcoin. Lichtenstein and his wife, Heather Morgan, were arrested in 2022 following a thorough federal investigation. Morgan, who went by the pseudonym “Razzlekhan,” was charged with aiding and abetting the laundering of the stolen funds and received an 18-month sentence. In a recent post, Morgan shared a photo of the couple, celebrating Lichtenstein’s early release as the “best New Year’s gift” after years of separation.
Morgan posts a photo of the couple after Lichtenstein’s release. Source: Heather Morgan
Implications and Recent Developments
The First Step Act, which expanded the entitlement to reduced sentences through time credits and other rehabilitation measures, has been instrumental in Lichtenstein’s early release. This development comes amidst other significant events in the cryptocurrency space, including the integration of PayPal’s PYUSD stablecoin into the Bitfinex-backed stablecoin. Furthermore, there have been discussions about potential refunds for the victims of the Bitfinex hack, with the exchange possibly being the only party entitled to a refund, according to an October 2024 court filing.
Lichtenstein’s case is not the only one drawing attention from former President Trump. Recently, Trump announced that he is reviewing the case of Keonne Rodriguez, co-founder of Samourai Wallet, suggesting a possible pardon. This move follows Trump’s pattern of granting pardons to individuals involved in high-profile cryptocurrency cases, including Ross Ulbricht, the founder of the defunct darknet marketplace Silk Road, and Changpeng “CZ” Zhao, the founder of Binance.
For more information on this story and other developments in cryptocurrency regulation, visit Cointelegraph.
