Mastermind Behind $4.5 Billion Bitfinex Hack Released From Prison Early
Ilya Lichtenstein, one of the masterminds behind the $4.5 billion Bitfinex exchange hack, has been released from prison early under the First Step Act, a law enacted during President Donald Trump’s first term. The 35-year-old hacker expressed his gratitude towards Trump’s law in a recent post, stating that he remains committed to making a positive impact on cybersecurity as quickly as possible.
Lichtenstein and his wife Heather Morgan were arrested in New York in February 2022 after authorities traced their fortune to the crypto heist. Morgan had developed a public reputation as a successful tech businesswoman, but secretly helped her husband launder Bitfinex’s stolen assets. Both pleaded guilty to money laundering, with Morgan additionally charged with conspiracy to commit fraud.
From Tech Entrepreneur to Federal Criminal
The couple used fake identities and transferred small amounts of cryptocurrencies to avoid detection, employing sophisticated methods to obscure the digital trail of their ill-gotten assets. Court documents reveal the extent of their money laundering scheme, which involved using fake identities and transferring cryptocurrencies in small amounts to avoid detection.
Source: BBC
Cooperation Secures Lighter Sentences
Morgan’s lawyers successfully argued for time served in federal court, citing the strict conditions in custody, including recovering from surgery and contracting COVID-19. Her cooperation with US authorities in other crypto prosecutions reduced her potential prison sentence from potentially decades behind bars for orchestrating one of the largest crypto heists in history.
Trump’s Crypto Clemency Wave Draws Political Fire
Lichtenstein’s release comes as part of a broader pattern of leniency toward crypto offenders under Trump’s administration. In March 2025, Trump pardoned BitMEX co-founders Arthur Hayes, Benjamin Delo, Samuel Reed, and employee Greg Dwyer, all of whom pleaded guilty in 2022 to violations of the Bank Secrecy Act. Binance founder Changpeng Zhao received a presidential pardon in October after pleading guilty to similar violations.
California Gov. Gavin Newsom has stepped up criticism of Trump’s pardon strategy, launching a state-backed website in December that tracks Trump’s “top criminal cronies.” This series of pardons and appeals has sparked significant political backlash, portraying cryptocurrency pardons as part of a larger debate about corruption, public safety, and the growing role of digital assets in American politics.
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