Bitfinex Hacker Ilya Lichtenstein Freed Early Thanks To Trump's Prison Reform Law— Wife Calls It 'Best New Years Present'

Convicted Bitfinex hacker Ilya Lichtenstein said a prison reform law signed by President Donald Trump led to his early release after serving part of a five-year sentence for one of the largest cryptocurrency thefts on record.

Prison Reform Law Cited In Early Release

Lichtenstein, a Russian-U.S. national who admitted to hacking crypto exchange Bitfinex in 2016 and stealing nearly 120,000 bitcoin (CRYPTO: BTC), said on Thursday he has been released from prison early under the First Step Act, the bipartisan criminal justice reform law signed by Trump in 2018.

In a post on his X, he added that he plans to pursue work in cybersecurity and thanked supporters while saying he intends to prove critics wrong.

Thanks to President Trump's First Step Act, I have been released from prison early.
I remain committed to making a positive impact in cybersecurity as soon as I can.

To the supporters, thank you for everything.
To the haters, I look forward to proving you wrong.

— Ilya Lichtenstein (@cipherstein) January 2, 2026

A Trump administration official confirmed to CNBC on Friday that Lichtenstein has served a significant portion of his sentence and is now on home confinement.

Sentence, Custody Credits And Official Release Date

Lichtenstein, 38, pleaded guilty to money laundering conspiracy and was sentenced in November 2024 to five years in prison.

His sentence included credit for time already served following his 2022 arrest, more than five years after the Bitfinex hack.

As of Friday morning, the federal inmate locator still listed Lichtenstein's scheduled release date as Feb. 9, indicating he remains under supervision despite leaving prison custody.

See Also: FBI Thwarts Alleged ISIS-Inspired New Year’s Eve Terror Attack In North Carolina, Charges 18-Year-Old

Wife Heather Morgan Also Released Early

Lichtenstein's wife, Heather Morgan, who pleaded guilty to helping launder the stolen bitcoin, shared his message on social media, calling his return home the "best New Year's present" after four years apart.

The best New Years present I could get was finally having my husband home after 4 years of being apart. 💜🙏🪬 https://t.co/toUJ0Bz70h pic.twitter.com/plsnktmJ5l

— Heather "Razzlekhan" Morgan (@HeatherReyhan) January 2, 2026

Morgan, 35, who performs as a rapper under the name "Razzlekhan," was sentenced to 18 months in prison and entered custody in February.

She announced her own early release in October, also crediting Trump's prison reform law.

The First Step Act allows eligible federal inmates to earn time credits and transition to home confinement, but does not involve presidential pardons or individual intervention.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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