Bitfinex Heist Figure Released Early Due to Trump-Era Law

Ilya Lichtenstein, the hacker responsible for the 2016 Bitfinex breach involving the theft of 119,754 Bitcoin, has been released from prison.

Key Points:

Lichtenstein's early release is attributed to the First Step Act, a criminal justice reform enacted in 2018.
He was arrested in February 2022 for laundering stolen crypto worth $4.5 billion at arrest time, now valued over $10 billion.
Sentenced in November 2024 to five years, he served less due to participation in recidivism reduction programs under the First Step Act.
His wife, Heather "Razzlekhan" Morgan, received an 18-month sentence and was released after eight months.
The First Step Act aims to reduce the federal prison population by allowing inmates to earn time credits.
Donald Trump has taken actions perceived favorable to crypto figures, including pardoning Binance co-founder Changpeng Zhao in 2025.
Lichtenstein's release highlights complexities in sentencing for crypto-related crimes and introduces political factors into regulatory considerations.

This event underscores the impact of broader political currents on financial crime enforcement in the cryptocurrency space.