The Hacker Returns: Bitfinex Mastermind Ilya Lichtenstein Freed Early via Trump Law

The article recalls the 2016 Bitfinex hack, in which 119,756 bitcoins were stolen and valued at about 61 million U.S. dollars at the time. In 2022, U.S. authorities arrested the attackers, with 94,000 bitcoins seized and the total value of confiscated assets cited as exceeding 3.6 billion dollars; the pair were named as Ilya Lichtenstein and Heather Morgan.

Lichtenstein was sentenced to five years in prison, but was released after just over one year, a favour said to be tied to a criminal justice reform initiative signed into law by President Donald Trump during his first term. The piece notes that his early release followed his admission of responsibility and the laundering of the stolen funds, and that he publicly expressed gratitude to President Trump.

It also states that, post-release, Lichtenstein intends to focus on cybersecurity research, while the DOJ asserted that the hack did not directly involve individual customers and that any disputes would be handled via civil proceedings with Bitfinex as the primary victim.