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Saved February 14, 2026
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Ilya Lichtenstein, convicted for his role in the 2016 Bitfinex hack, announced his early release from prison, citing the First Step Act. He and his wife, Heather Morgan, pleaded guilty in 2023 after stealing over 119,000 bitcoin from the exchange. Lichtenstein is currently on home confinement.
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Ilya Lichtenstein has been released early from prison after serving time for money laundering related to the 2016 Bitfinex hack. He announced his release via a post on X, attributing it to the First Step Act, a law aimed at reforming the criminal justice system. Although he was sentenced to five years in November 2024, his early release reflects the Act's provisions for assessing recidivism risk. His official release date is still listed as February 9, 2026.
Lichtenstein and his wife, Heather Rhiannon "Razzlekhan" Morgan, were arrested in February 2022 and pleaded guilty to charges stemming from the hack, which involved stealing 119,754 bitcoin worth around $71 million at the time. They exploited a vulnerability in Bitfinex's multi-signature withdrawal process to authorize fraudulent transactions. Law enforcement recovered approximately 94,000 bitcoin, valued at about $3.6 billion in 2022, making it one of the largest cryptocurrency seizures in U.S. history.
Morgan, who served an 18-month sentence, celebrated Lichtenstein's return on social media, describing her husband's release as a significant moment after four years apart. A Trump administration official stated Lichtenstein is currently on home confinement and has served a substantial part of his sentence. The couple's activities included using stolen bitcoin for purchases, which ultimately led to their arrest when they redeemed gift cards at a Walmart using Morgan's account.
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