Bitfinex Hacker Behind $11 Billion Bitcoin Heist Credits Trump for Early Prison Release

BTC0,39%
TRUMP3,08%

In brief

  • Bitfinex hacker Ilya Lichtenstein has been released from prison years early and is now on home confinement.
  • Lichtenstein and his recently freed wife Heather “Razzlekhan” Morgan both credited President Trump with their early releases.
  • Trump admin officials confirmed the release of Lichtenstein, but did not say whether the White House intervened.

Ilya Lichtenstein, who orchestrated the theft of over $11 billion worth of Bitcoin from crypto exchange Bitfinex in 2016, is out of prison years ahead of schedule—and credits President Donald Trump with the early release. Months prior, Lichtenstein’s wife and convicted co-conspirator, Heather “Razzlekhan” Morgan, was also released early from prison. Morgan similarly thanked Trump for her early release.  A Trump administration official confirmed to _Decrypt _on Monday that Lichtenstein is in fact out of prison. 

“This individual has served significant time on his sentence and is currently on home confinement consistent with statute and Bureau of Prisons policies,” the official said. The official did not respond to further inquiries regarding whether the White House played any role in securing Lichtenstein’s early release.

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

The convicted money launderer was sentenced in November 2024 to five years in prison for stealing over 119,000 BTC from Bitfinex. Lichtenstein managed to obtain the funds by exploiting a vulnerability in the crypto exchange’s security infrastructure, with his wife convicted for helping to launder the stolen funds.

The stolen Bitcoin, valued at $71 million at the time, is now worth some $11.2 billion. The funds were eventually recovered by the U.S. government. Upon his release on New Year’s Day, Lichtenstein credited “President Trump’s First Step Act” with his early release from federal prison. “To the supporters, thank you for everything,” Lichtenstein said. “To the haters, I look forward to proving you wrong.” In 2018, President Trump signed the First Step Act, a bipartisan prison reform bill that, among other things, offered new pathways for certain inmates to be “pre-released” into home confinement. Certain elderly and terminally ill inmates are permitted to serve the remainder of their sentences at home, and inmates can also earn up to 54 days a year of “good time credit” that can accumulate towards early pre-release. It is not clear whether Lichtenstein qualified as elderly or terminally ill, or had accumulated sufficient good time credit to be pre-released barely a year after receiving his sentence. The Bureau of Prisons did not immediately respond to Decrypt’s request for comment on the matter. Upon her own release from prison in October, Lichtenstein’s wife, the rapper Heather “Razzlekhan” Morgan, thanked President Trump for the early exit—but made no mention of the First Step Act. “I want to give a shoutout to Papa Trump for making my 18-month sentence shorter,” Morgan said from her bathtub. “So razzle-fucking-dazzle.” At the time, a White House official told Decrypt that Morgan’s early release was “not due to a commutation from the president.”

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

European Bitcoin Reserve Strategies Diverge from MicroStrategy Model as Local Approaches Gain Traction

European enterprises face unique regulatory challenges compared to the U.S. in issuing financial instruments, leading them to adopt localized strategies for bitcoin investments. Major European bitcoin-holding companies are significantly smaller than U.S. firms.

GateNews38m ago

Bitcoin ETFs See $291 Million Outflow as Ether Gains $9 Million

Bitcoin exchange-traded funds (ETFs) opened the week with heavy outflows, reversing last week’s momentum. Ether ETFs posted modest gains, while XRP declined, and solana activity stalled. Key Takeaways: Bitcoin ETFs saw $291.11 million outflows led by Fidelity FBTC, signaling renewed caution. Et

Coinpedia49m ago

Adam Back Advocates Optional Quantum Resistance Upgrade, Opposing BIP-361 Forced Freeze Plan

Blockstream CEO Adam Back supports an optional Bitcoin quantum resistance upgrade at Paris Blockchain Week, opposing the BIP-361 proposal to freeze quantum-vulnerable addresses. He emphasizes proactive measures over crisis responses.

GateNews1h ago

Cato Institute Criticizes U.S. Bitcoin Tax Rules as Barrier to Payments, Calls for Reform

The Cato Institute criticizes U.S. bitcoin tax policies for complicating transactions and hindering adoption. They propose reforms like eliminating capital gains taxes on small crypto payments and increasing exemption thresholds for better usability.

GateNews1h ago

Bhutan Sells $18.46M BTC in 24 Hours, $264M Holdings Remain

Bhutan sold about $18.46 million in Bitcoin recently, retaining around 3,524 BTC valued at $264 million. Their strategy has shifted from accumulation through hydropower mining to active liquidation, having sold $198 million since 2026. Further sales could reduce holdings significantly by September 2026.

GateNews1h ago

Central African Republic Approves Cryptocurrency Regulation Bill, Not Bitcoin Legal Tender

The Central African Republic's parliament approved a cryptocurrency regulation bill, legalizing its use in financial markets while imposing strict penalties for offenses. The regulation aims to streamline remittances and provide access to digital currencies, despite concerns over crime and donor disbursements.

GateNews2h ago
Comment
0/400
No comments