Bitcoin hacker behind massive crypto theft gets early prison release, credits Trump

Ilya Lichtenstein, a dual Russian-U.S. national who orchestrated a significant heist of nearly 120,000 bitcoins from the crypto exchange Bitfinex, has announced his early release from prison. Lichtenstein attributes this unexpected freedom to the bipartisan prison reform legislation known as the First Step Act, which was signed into law by former President Donald Trump. At 38 years old, Lichtenstein was sentenced to five years in prison in November 2024 after he pleaded guilty to charges related to money laundering. The stolen cryptocurrency is now valued at billions across the market. Late Thursday, he took to his official social media account to express gratitude, stating, "Thanks to President Trump's First Step Act, I have been released from prison early." He added, "I remain committed to making a positive impact in cybersecurity as soon as I can," and acknowledged both his supporters and detractors. According to a Trump administration official, Lichtenstein has served a substantial portion of his sentence and is currently under home confinement, in compliance with statutory and Bureau of Prisons policies. The official response was issued to CNBC shortly after Lichtenstein's announcement. Lichtenstein's wife, Heather Morgan, who also pleaded guilty to aiding in the laundering of the stolen funds, shared his message on her social media, celebrating his return after four years apart. Morgan, who has a background as a rapper known as "Razzlekhan," was sentenced to 18 months and had recently posted a video thanking Trump for her own early release. Both Lichtenstein and Morgan's releases come amid broader discussions around prison reform, initiated by the First Step Act, which was designed to address federal prison overcrowding and included provisions for early release based on a risk assessment system. While it remains unclear whether Trump's administration played a direct role in securing the releases of Lichtenstein and Morgan, their cases follow a series of high-profile pardons in the cybercrime space, including those of individuals closely associated with the cryptocurrency world. Lichtenstein's release is scheduled under federal guidelines, and as of now, he is set to remain under supervision until further notice. The Bureau of Prisons has yet to comment on this situation, but the implications of their early release are sure to stir further debate on cybersecurity and the justice system's handling of financial crimes.