Billion-dollar Bitcoin hacker credits Trump’s 'First Step Act' for early prison release

Bitfinex hacker sentenced to five years in November 2024, released after just 14 months behind bars.

Ilya Lichtenstein, the Russian-American convicted of masterminding the 2016 hack of the Bitfinex cryptocurrency exchange and laundering the stolen funds, announced his early release from federal custody, crediting a key criminal justice reform law.

Lichtenstein, who was sentenced to five years in prison in November 2024, was released after serving approximately 14 months behind bars. The 119,754 Bitcoin stolen in the original heist were valued at over $10 billion at current market prices.

Trump's First Step Act

Lichtenstein took to social media to thank the former President for the legislation that facilitated his early freedom. "Thanks to President Trump's First Step Act, I have been released from prison early," Lichtenstein wrote in a post on X (formerly Twitter).

The First Step Act, signed into law in 2018, allows federal prisoners to earn time credits toward early release by completing rehabilitative programs and engaging in productive activities while incarcerated. Federal officials confirmed that Lichtenstein's release was consistent with the statute and the Bureau of Prisons' policies for transition to supervised release, including home confinement.

Sentencing details

Lichtenstein pleaded guilty in August 2023 to conspiracy to commit money laundering and was sentenced in November 2024. His wife, Heather "Razzlekhan" Morgan, who pleaded guilty to assisting in the laundering, was sentenced to 18 months and was released in October after serving roughly eight months.

High-profile case and cooperation

Lichtenstein's case, which gained viral notoriety due to the couple's eccentric lifestyle and Morgan's persona as rapper "Razzlekhan," is one of the largest financial crimes ever prosecuted by the U.S. Justice Department.

Authorities successfully recovered approximately 94,000 BTC of the stolen funds, representing one of the largest seizures of stolen digital assets in history.

Lichtenstein assisted U.S. authorities by testifying against the alleged operator of the crypto mixer Bitcoin Fog in March 2024. He stated in his post that he "remains committed to making a positive impact in cybersecurity as soon as I can," signaling his intent to pivot to defensive work.

Lichtenstein's early release, following a string of pardons and clemency granted to other crypto-related defendants, has intensified the debate over the proportionality of sentencing for high-profile digital crimes and the effectiveness of the First Step Act in such cases.