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Bitfinex Hack Figure Ilya Lichtenstein Moves to Home Confinement Under First Step Act

The case produced one of the largest bitcoin recoveries by U.S. authorities after the 2016 exchange breach.

Overview

  • Lichtenstein said on X that he was released early under the 2018 First Step Act and signaled plans to work in cybersecurity.
  • Federal records and a U.S. official confirm he is under home confinement, with public BOP data listing an official release date in early 2026.
  • He received a five-year sentence in November 2024 after pleading guilty to money laundering; his wife, Heather Morgan, got 18 months and was released after about eight months.
  • The 2016 Bitfinex theft moved 119,754 bitcoin, and authorities later recovered roughly 94,000 bitcoin in what officials described as a landmark seizure.
  • Prosecutors filed in January 2025 to return recovered assets to Bitfinex, and investigators tied the laundering to mixers, crypto conversions, and Walmart gift cards redeemed under Morgan’s account.