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Bitfinex Hacker Ilya Lichtenstein Moves to Home Confinement Under First Step Act

The admitted Bitfinex thief gained an early transfer after cooperating in related prosecutions, with officials noting he was not pardoned.

Overview

  • Lichtenstein served roughly 14 months of a five-year sentence and posted on X that a 2018 prison-reform law enabled his early transfer.
  • A Trump administration official said he is now on home confinement consistent with Bureau of Prisons policy.
  • Federal inmate records still show a scheduled Feb. 9, 2026 release date even as he serves the remainder under supervision.
  • Authorities recovered about 94,000 of the 119,754 bitcoin stolen in 2016, and prosecutors moved in 2025 to return the coins to Bitfinex as restitution.
  • His cooperation included testifying against Bitcoin Fog operator Roman Sterlingov, and his wife Heather Morgan was released early after an 18‑month sentence.