# Bitfinex Hacker Released Early Due to Trump’s First Step Act
🔥 Key Takeaways
- Ilya Lichtenstein, the hacker behind the 2016 Bitfinex breach, was released early from prison after serving one year of a five-year sentence.
- His release was facilitated by sentence reductions under the First Step Act, signed into law by former President Donald Trump.
- The Bitfinex hack resulted in the theft of over 120,000 BTC (worth ~$10 billion at the time).
- Lichtenstein and his wife, Heather Morgan, were arrested in 2022 for money laundering related to the stolen funds.
- The case remains one of the largest crypto heists in history.
## Early Release Under the First Step Act
Ilya Lichtenstein, the mastermind behind the 2016 Bitfinex hack, has been released from federal prison after serving just one year of his five-year sentence. His early release was made possible by the First Step Act, a bipartisan criminal justice reform bill signed by former President Donald Trump in 2018.
The law allows for reduced sentences for non-violent offenders who meet certain criteria, including good behavior and participation in rehabilitation programs. Lichtenstein, who pleaded guilty to money laundering conspiracy, qualified for the reduction.
## The $10 Billion Bitfinex Hack
The Bitfinex breach, one of the largest crypto heists in history, saw hackers steal 120,000 BTC (worth ~$72 million at the time but over $10 billion at its peak). The stolen funds were laundered through a complex network of transactions over several years.
Lichtenstein and his wife, Heather Morgan (aka the “Crypto Queen”), were arrested in February 2022 after authorities traced the stolen Bitcoin to their accounts. While Morgan received a lighter sentence, Lichtenstein was initially sentenced to five years in prison.
## Implications for Crypto Security
This case highlights ongoing concerns about exchange security and regulatory oversight in the crypto space. Despite advancements in blockchain forensics, large-scale hacks remain a persistent threat.
Lichtenstein’s early release also raises questions about sentencing policies for cybercrimes, particularly as digital asset theft continues to evolve.
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