The mastermind behind the Bitfinex hack, one of the crucial outstanding circumstances in crypto safety historical past, has been launched early from jail after serving 14 months, below a 2018 legislation signed by US President Donald Trump.
Bitfinex Hack Mastermind Receives Early Launch
On Friday, Ilya Lichtenstein, the mastermind behind the 2016 hack that stole over 120,000 Bitcoin (BTC) from crypto trade Bitfinex, introduced that he had been launched from jail a 12 months after receiving a five-year sentence.
He X, Lichtenstein thanks a legislation signed by President Trump throughout his first administration for his launch. “Because of President Trump’s First Step Act, I’ve been launched from jail early,” the submit said.
Notably, Trump signed the bipartisan First Step Act on December 21, 2018, aiming to enhance felony justice outcomes and cut back the scale of the federal jail inhabitants. The legislation included a sequence of reforms, together with one to ascertain a “threat and desires evaluation system” that provides some inmates rehabilitative programming and the chance to be launched early into residence confinement.
Based on CNBC, a Trump administration official stated on January 2 that the mastermind behind the Bitfinex hack “has served vital time on his sentence and is at present on residence confinement in step with statute and Bureau of Prisons insurance policies.”
The US Division of Justice (DOJ) beforehand declared that Lichtenstein used superior hacking methods and instruments to entry Bitfinex’s community. He then transferred 119,574 Bitcoin to certainly one of his crypto wallets via greater than 2,000 transactions.
On the time, the stolen funds had been valued at round $71 million. Nevertheless, its worth has elevated exponentially up to now decade, being value practically $11 billion at present costs. Throughout his sentencing listening to, he expressed regret for utilizing his abilities on felony actions “as an alternative of a optimistic contribution to society.”
“I stay dedicated to creating a optimistic affect in cybersecurity as quickly as I can,” Lichtenstein affirmed on his Friday announcement, thanking his supporters for the assistance and vowing to show “the haters” flawed.
Crypto Heist Figures Reunite Underneath Trump’s Regulation
Lichtenstein’s spouse, Heather Morgan, reacted to the information on-line, declaring that being reunited at residence along with her husband after 4 years was “one of the best New Yr’s current” she may get.
Morgan, a rapper recognized on-line as “Razzlekhan,” entered jail in February 2025 however was launched early from jail after eight months below the First Step Act. In late October, she posted a video on X, sharing the information and thanking President Trump for her launch.
“It is rather good to be again, and I need to give a shout out to Papa Trump for making my 18-month sentence shorter,” she stated. Nevertheless, it seems that the US President was circuitously concerned within the choice.
As reported by Bitcoinist, the self-titled “Crocodile of Wall Road” was sentenced to 18 months in jail on November 18, 2024, for her function within the Bitfinex heist. Regardless of not being concerned within the hack, Morgan assisted her husband in laundering the stolen funds by utilizing “quite a few subtle laundering methods” to disguise them.
Notably, they used pretend identities to create on-line accounts, deposited the stolen Bitcoin in a number of darknet markets and crypto exchanges to withdraw the funds, transformed BTC to different cryptocurrencies, and deposited a part of the funds into crypto mixers. The couple apparently managed to launder 21% of the overall funds stolen from Bitfinex.
On the time, prosecutors argued that Morgan was “a keen participant and bears full duty for her actions.” Nonetheless, they famous that she was “a lower-level participant,” which resulted in her lowered sentence.
Bitcoin (BTC) trades at $90,304 within the one-week chart. Supply: BTCUSDT on TradingView
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