Following his guilty plea for the 2016 Bitfinex hack, Ilya Lichtenstein was sentenced to five years in prison in November 2024. However, he was released after just 14 months, crediting his early release to President Trump's First Step Act.
Lichtenstein expressed his gratitude and commitment to making a positive impact in cybersecurity. The First Step Act, signed into law by Trump in 2018, is a prison and sentencing reform bill aimed at reducing taxpayer expenses. Lichtenstein's release has sparked mixed reactions, with some congratulating him and others criticizing his early release. The 2016 Bitfinex hack resulted in the theft of 119,754 BTC, valued at approximately $71 million at the time and over $10 billion at current prices.
Authorities were able to recover around 94,000 BTC, and in January 2025, U.S. prosecutors filed a motion for the recovered BTC to be returned to Bitfinex. Lichtenstein pleaded guilty to a money laundering conspiracy charge and admitted to hacking crypto assets, claiming his wife was not involved in the crime. His release comes amidst controversy surrounding President Trump's use of executive clemency in crypto-related cases, although Lichtenstein himself was not pardoned.