- Trump-era reform cuts sentence for Bitfinex hacker, stunning crypto community worldwide
- Early prison release reignites debate over justice reform and crypto crime
- High-profile Bitcoin theft case reshapes enforcement and restitution discussions
A major crypto crime story resurfaced after a surprise early release tied to U.S. sentencing reform, as Ilya Lichtenstein linked the move to a Trump-era justice law. According to his post on X, the early release followed earned time credits under the First Step Act signed by President Donald Trump. Lichtenstein had received a five-year sentence after pleading guilty to laundering funds tied to the Bitfinex breach, which involved nearly 120,000 Bitcoin.
At current prices of $89,642 per coin, the stolen Bitcoin total stands at $10.7 billion, keeping the case financially significant within the crypto market. The First Step Act expanded eligibility for sentence reductions through rehabilitation and compliance programs, allowing qualifying inmates to shorten sentences under federal guidelines.
Lichtenstein said he plans to pursue cybersecurity work after release, framing the moment as an opportunity to rebuild professional credibility. His wife, Heather Morgan, also confirmed the news through a social media post and shared a photo of the couple following the reunion. Morgan, known publicly as Razzlekhan, received an 18-month sentence for laundering stolen crypto funds and announced her own early release.
Also Read: Crypto Sentiment Surges as Analyst Warns Retail FOMO Could Stall Bitcoin Rally
Trump-era justice reform reshapes major crypto crime outcomes
Despite the releases, legal proceedings tied to the hack remain active across restitution and recovery channels, with court filings suggesting Bitfinex may be the only eligible victim for reimbursement. Federal authorities recovered a substantial portion of the stolen Bitcoin after arrests in 2022, and officials described the operation as one of the largest crypto seizures completed by the U.S. government.
Lichtenstein later claimed sole responsibility for the hacking activity itself, stating that his wife had no role in breaching Bitfinex systems and learned of the scheme much later. The case eventually moved beyond courtrooms into popular media coverage, with a Netflix docuseries and an upcoming film continuing to draw public attention.
Meanwhile, Donald Trump has signaled openness to reviewing other crypto-related prosecutions, saying he would examine the case involving Keonne Rodriguez, according to public remarks.
Trump has previously taken decisive actions involving crypto figures, granting clemency to Ross Ulbricht, which drew global attention. Additionally, Trump pardoned Changpeng Zhao, known as CZ, reinforcing how Trump-era reforms continue influencing outcomes in high-profile crypto crime cases.
Also Read: XRP Flips BNB Again: Here’s Why the Price Is Rising Suddenly
