Mastermind Behind $4.5 Billion Bitfinex Hack Released Early Under Trump's First Step Act
Ilya Lichtenstein, identified as one of the masterminds behind the $4.5 billion Bitfinex hack involving around 120,000 Bitcoin, was released early from prison under the First Step Act signed by former President Donald Trump in 2018. His early release followed his cooperation with federal prosecutors on various crypto-related prosecutions. Lichtenstein expressed gratitude for the First Step Act and indicated a commitment to cybersecurity in a post on X on January 2, 2026.
Lichtenstein's wife, Heather Morgan, pleaded guilty to money laundering and an additional conspiracy to defraud charge. She was released in October 2024 after serving about eight months in custody and had remained free on personal recognizance prior to sentencing. The couple had been arrested in New York in February 2022 after authorities traced their wealth back to the Bitfinex heist. Notably, Morgan maintained public-facing roles as a tech entrepreneur and rapper while secretly aiding in laundering the stolen assets.
Their cooperation with U.S. authorities on further cryptocurrency prosecutions significantly reduced their potential prison time from decades to just months. The First Step Act facilitates early release for prisoners through rehabilitation programs and productive activities.
This case fits within a broader pattern of crypto-related clemency under the Trump administration, which also included March 2025 pardons for BitMEX co-founders and an October 2025 pardon for Binance founder Changpeng Zhao. The article additionally notes criticism from California and mentions a state tracker linked to this policy shift.
