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11h ago

Bitfinex Hacker Ilya Lichtenstein Leaves Prison Early Under First Step Act

His transfer to home confinement followed time credits earned under a 2018 prison-reform law.

Laptop with bitcoins and files, illustration.
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Ilya Lichtenstein, who pleaded guilty with wife Heather Morgan in the plundering of Bitfinex, is now testifying against the mixer he used. (Alexandria Sheriff's Office)
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Overview

  • Lichtenstein said he was freed after roughly 14 months of a five-year sentence, crediting the First Step Act for the early move.
  • A Trump administration official confirmed he is now on home confinement consistent with statute and Bureau of Prisons policies.
  • Federal inmate records still show a Feb. 9, 2026 release date, indicating a transfer to pre-release custody rather than a pardon.
  • He pleaded guilty in 2024, admitted he was the original hacker, and cooperated with investigators, including testifying in the Bitcoin Fog case against Roman Sterlingov.
  • Authorities recovered about 94,000 BTC tied to the 2016 theft, and prosecutors moved in early 2025 to return the seized coins to Bitfinex as in-kind restitution.