If you're going to steal 120,000 bitcoin (BTC), you should probably expect to spend some serious time behind bars. But sometimes the law works in unexpected ways.
Bitfinex Hacker Walks Free Early Under Trump-Era Prison Reform Law

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Early Exit From Federal Prison
Ilya Lichtenstein, the Russian-U.S. national who admitted to hacking crypto exchange Bitfinex back in 2016 and making off with nearly 120,000 bitcoin, announced on Thursday that he's been released from prison early. The reason? The First Step Act, a bipartisan criminal justice reform law that President Donald Trump signed in 2018.
Lichtenstein shared the news on X, saying he plans to pursue work in cybersecurity. He thanked his supporters and made it clear he intends to prove his critics wrong. A Trump administration official confirmed to CNBC on Friday that Lichtenstein has served a significant chunk of his sentence and is now on home confinement.
The Numbers Behind His Sentence
Let's back up a moment. Lichtenstein, now 38, pleaded guilty to money laundering conspiracy and was sentenced in November 2024 to five years in prison. That sentence included credit for time he'd already served following his 2022 arrest, which came more than five years after the actual Bitfinex hack went down.
As of Friday morning, the federal inmate locator still showed Lichtenstein's scheduled release date as Feb. 9, which means he technically remains under supervision even though he's left prison custody. That's how home confinement works under the First Step Act—inmates can earn time credits and transition out of prison walls, but they're not exactly free and clear.
His Wife Got Out Early Too
Here's where the story gets even more interesting. Lichtenstein's wife, Heather Morgan, who pleaded guilty to helping launder the stolen bitcoin, shared his message on social media. She called his return home the "best New Year's present" after four years apart.
Morgan, 35, who performs as a rapper under the name "Razzlekhan" (yes, really), was sentenced to 18 months in prison and entered custody in February. She announced her own early release back in October, also crediting Trump's prison reform law.
It's worth noting that the First Step Act allows eligible federal inmates to earn time credits and move to home confinement through a structured process. This isn't about presidential pardons or individual intervention—it's a law that applies to eligible inmates across the board.
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