Bitfinex Hacker Out of Prison After a Year Due to President Trump’s First Step Act

Ilya Lichtenstein, responsible for the 2016 Bitfinex bitcoin hack involving nearly 120,000 BTC (worth over $10 billion today), was released from US federal prison on January 2, 2026, after serving only about one year of his five-year sentence for conspiracy to commit money laundering. His early release was granted due to sentence reductions provided by President Donald Trump's First Step Act, which allows inmates to earn time credits for rehabilitation programs, particularly for non-violent offenses. Lichtenstein executed the breach himself by exploiting internal authorization systems. His release is noted as part of a broader pattern during Trump's second term, which has also seen clemency for figures like Ross Ulbricht and Changpeng Zhao, fueling debate in the crypto community over deterrence versus proportional sentencing.

(Source：BeInCrypto)