{"id":8231,"date":"2026-01-05T12:21:35","date_gmt":"2026-01-05T18:21:35","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=87290"},"modified":"2026-01-05T12:21:35","modified_gmt":"2026-01-05T18:21:35","slug":"convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2026\/01\/05\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law\/","title":{"rendered":"Convicted Bitfinex bitcoin launderer freed from prison, thanks Trump law"},"content":{"rendered":"<p><head> <meta charset=\"UTF-8\"> <meta name=\"viewport\" content=\"width=device-width, initial-scale=1\"> <meta name=\"robots\" content=\"index, follow, max-image-preview:large, max-snippet:-1, max-video-preview:-1\"> <!-- This site is optimized with the Yoast SEO Premium plugin v24.5 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ --> <title>Convicted Bitfinex bitcoin launderer freed from prison, thanks Trump law | CyberScoop<\/title> <meta name=\"description\" content=\"A hacker who pleaded guilty to conspiring to launder billions of dollars worth of bitcoin stolen in the 2016 Bitfinex hack has been released from prison, a little more than one year after being sentenced to a five-year stint.\"> <link rel=\"canonical\" href=\"https:\/\/cyberscoop.com\/bitfinex-hacker-ilya-lichtenstein-early-release-first-step-act\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Convicted Bitfinex bitcoin launderer freed from prison, thanks Trump law\"> <meta property=\"og:description\" content=\"A hacker who pleaded guilty to conspiring to launder billions of dollars worth of bitcoin stolen in the 2016 Bitfinex hack has been released from prison, a little more than one year after being sentenced to a five-year stint.\"> <meta property=\"og:url\" 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js-single-article-content\">\n<header class=\"single-article__header \" readability=\"24.771144278607\">\n<div class=\"single-article__header-content\" readability=\"33.116147308782\">\n<p> Ilya Lichtenstein was supposed to serve five years after being sentenced in late 2024. <\/p>\n<p> <!-- Listen to this article section --> <!-- Audio Element --><br \/>\n<audio id=\"audio-player\" src=\"https:\/\/wp-tts-cdn.api.scpnewsgrp.com\/cyberscoop\/87290\/english.openai.mp3\"><\/audio> <\/p>\n<div readability=\"11\">\n<div>\n<p>Listen to this article<\/p>\n<p> <!-- Countdown Timer --> <\/p>\n<p>0:00<\/p>\n<\/p><\/div>\n<p> <!-- Tooltip --> <\/p>\n<p> <span id=\"tts-tooltip\">Learn more.<\/span> <span> This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment. <\/span> <\/p>\n<\/div>\n<p> <!-- End of audio player --> <\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img data-recalc-dims=\"1\" fetchpriority=\"high\" width=\"640\" height=\"427\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law.jpg?resize=640%2C427&#038;ssl=1\" class=\"single-article__cover-image wp-post-image\" alt decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg 1920w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=300,200 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=768,512 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=1024,683 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=1536,1025 1536w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=600,400 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=252,168 252w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=505,337 505w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=1012,675 1012w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-5.jpg?resize=1264,843 1264w\" sizes=\"(max-width: 1012px) 100vw, 1012px\"><figcaption> (Photo illustration by Dan Kitwood\/Getty Images) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"22.754616895874\"><body readability=\"49.083815028902\"><\/p>\n<p>A hacker who pleaded guilty to conspiring to launder billions of dollars worth of bitcoin stolen in the <a href=\"https:\/\/cyberscoop.com\/tag\/bitfinex\/\">2016 Bitfinex hack<\/a> has been released from prison, a little more than one year after being sentenced to a five-year stint.<\/p>\n<p>Ilya Lichtenstein posted on X that his early release came as a result of a bipartisan 2018 law that President Donald Trump signed in his first term that was meant to reduce the federal inmate population.<\/p>\n<p>\u201cThanks to President Trump\u2019s First Step Act, I have been released from prison early,\u201d <a href=\"https:\/\/x.com\/cipherstein\/status\/2006939277230297536\">he wrote<\/a> last week. \u201cI remain committed to making a positive impact in cybersecurity as soon as I can.\u201d<\/p>\n<p>The Bitfinext hack eventually led to what the Justice Department said was, at the time of <a href=\"https:\/\/cyberscoop.com\/bitfinex-cryptocurrency-theft-arrests-doj\/\">the arrest<\/a> of Lichtenstein in 2022, the then-biggest federal recovery and seizure of stolen bitcoin, worth $3.6 billion. Authorities accused Lichtenstein and his wife, Heather Morgan \u2014 a rapper on the side who went by the name Razzlekhan \u2014 of laundering $4.5 billion from the Bitfinex hack.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>It\u2019s a quick reversal from Lichtenstein\u2019s <a href=\"https:\/\/www.justice.gov\/archives\/opa\/pr\/bitfinex-hacker-sentenced-money-laundering-conspiracy-involving-billions-stolen\">sentence issued<\/a> in November 2024. At the time of the arrest of the Manhattan couple, law enforcement touted its pursuit of crypto criminals.&nbsp;&nbsp;<\/p>\n<p>\u201cToday\u2019s arrests, and the department\u2019s largest financial seizure ever, show that cryptocurrency is not a safe haven for criminals,\u201d said then-Deputy Attorney General Lisa Monaco. \u201cIn a futile effort to maintain digital anonymity, the defendants laundered stolen funds through a labyrinth of cryptocurrency transactions.\u201d<\/p>\n<p>Lichtenstein on X hailed himself as a \u201chacker on the road to redemption,\u201d adding, \u201cTo the supporters, thank you for everything. To the haters, I look forward to proving you wrong.\u201d<\/p>\n<p>Morgan <a href=\"https:\/\/x.com\/HeatherReyhan\/status\/2006939858774929720?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E2006939858774929720%7Ctwgr%5E6d486439eba42529b14908b5476472624204bad7%7Ctwcon%5Es1_c10&amp;ref_url=https%3A%2F%2Fwww.cnbc.com%2F2026%2F01%2F02%2Fbitcoin-hacker-ilya-lichtenstein-bitfinex-razzlekhan.html\">hailed his release<\/a>, too.<\/p>\n<p>The Justice Department and Bureau of Prisons did not respond to a request for comment. The FBI declined to comment. A U.S. official<a href=\"https:\/\/www.cnbc.com\/2026\/01\/02\/bitcoin-hacker-ilya-lichtenstein-bitfinex-razzlekhan.html\"> told CNBC<\/a> that Lichtenstein \u201chas served significant time on his sentence and is currently on home confinement consistent with statute and Bureau of Prisons policies.\u201d<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\">\n<div class=\"author-card\" readability=\"7.7216117216117\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-1.jpg?w=640&#038;ssl=1\" alt=\"Tim Starks\"> <\/figure>\n<\/p><\/div>\n<div class=\"author-card__details\" readability=\"10.901098901099\">\n<h4 class=\"author-card__name\">Written by Tim Starks<\/h4>\n<p> Tim Starks is senior reporter at CyberScoop. His previous stops include working at The Washington Post, POLITICO and Congressional Quarterly. An Evansville, Ind. native, he&#8217;s covered cybersecurity since 2003. Email Tim here: <a href=\"mailto:tim.starks@cyberscoop.com\">tim.starks@cyberscoop.com<\/a>. <\/div>\n<\/p><\/div>\n<div class=\"single-article__tags-container\">\n<h4 class=\"single-article__tags-title\">In This Story<\/h4>\n<\/p><\/div>\n<\/footer>\n<p> <\/html><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"single-article__ads js-single-article-sidebar\">\n<div class=\"ad ad--sidebar js-single-article-sidebar-5 ad--rightrail_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-4 ad--rightrail_2 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<div class=\"ad ad--sidebar js-single-article-sidebar-3 ad--rightrail_3 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div><\/div>\n<\/article>\n<div class=\"popular-stories popular-stories--single-post\">\n<div class=\"popular-stories__container\">\n<h2 class=\"popular-stories__title\"> More Scoops <\/h2>\n<div class=\"popular-stories__stories\">\n<div class=\"popular-stories__cards\">\n<article class=\"post-item post-item--popular-stories-cards has-grayscale-images\" readability=\"23.246187363834\">\n<figure class=\"post-item__thumbnail\"> <a class=\"post-item__thumbnail-link\" href=\"https:\/\/cyberscoop.com\/nyc-couple-guilty-bitfinex-hack\/\" tabindex=\"-1\"> <img data-recalc-dims=\"1\" loading=\"lazy\" width=\"522\" height=\"337\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-2.jpg?resize=522%2C337&#038;ssl=1\" class=\"attachment-ratio-16-9-md size-ratio-16-9-md wp-post-image\" alt decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg 1920w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=300,194 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=768,496 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=1024,661 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=1536,991 1536w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=600,387 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=260,168 260w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=522,337 522w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=1046,675 1046w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-6.jpg?resize=1306,843 1306w\" sizes=\"auto, (max-width: 522px) 100vw, 522px\"> <\/a><figcaption class=\"screen-reader-text\"> This illustration photo shows Heather Morgan, also known as \u201cRazzlekhan,\u201d on a phone in front of the Bitcoin logo displayed on a screen, in Washington, DC, February 9, 2022. (Photo by OLIVIER DOULIERY\/AFP via Getty Images) <\/figcaption><\/figure>\n<header class=\"post-item__meta\" readability=\"3.4698275862069\">\n<h3 class=\"post-item__title\"> <a class=\"post-item__title-link\" href=\"https:\/\/cyberscoop.com\/nyc-couple-guilty-bitfinex-hack\/\"> NYC couple pleaded guilty to money laundering in Bitfinex hack <\/a> <\/h3>\n<p> Ilya Lichtenstein also admitted, for the first time publicly, to carrying out the hack that resulted in a $3.6 billion seizure by the Department of Justice. <\/p>\n<div class=\"post-item__byline\"> <span class=\"post-item__author\"> <span>By <\/span> <a class=\"post-item__author-link\" href=\"https:\/\/cyberscoop.com\/author\/aj-vicens\/\"> AJ Vicens <\/a> <\/span> <\/div>\n<p><!-- .byline --> <\/header>\n<p><!-- .post-item__meta --> <\/article>\n<article class=\"post-item post-item--popular-stories-cards \">\n<figure class=\"post-item__thumbnail\"> <a class=\"post-item__thumbnail-link\" href=\"https:\/\/cyberscoop.com\/cryptocurrency-laundering-hearing-razzlekhan\/\" tabindex=\"-1\"> <img data-recalc-dims=\"1\" loading=\"lazy\" width=\"260\" height=\"168\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-3.jpg?resize=260%2C168&#038;ssl=1\" class=\"attachment-ratio-16-9-sm size-ratio-16-9-sm wp-post-image\" alt decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-7.jpg 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-7.jpg?resize=300,194 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-7.jpg?resize=768,496 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-7.jpg?resize=600,387 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-7.jpg?resize=260,168 260w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-7.jpg?resize=522,337 522w\" sizes=\"auto, (max-width: 260px) 100vw, 260px\"> <\/a><figcaption class=\"screen-reader-text\"> This illustration photo shows Heather Morgan, also known as \u201cRazzlekhan,\u201d on a phone in front of the Bitcoin logo displayed on a screen, in Washington, DC, February 9, 2022. \u2013 A couple accused of seeking to launder the bitcoin were arrested in New York, the department said. Ilya Lichtenstein, 34, and his wife Heather Morgan, 31, were set to appear in federal court over the charges later in the day. (Photo by Olivier DOULIERY \/ AFP) (Photo by OLIVIER DOULIERY\/AFP via Getty Images) <\/figcaption><\/figure>\n<header class=\"post-item__meta\">\n<h3 class=\"post-item__title\"> <a class=\"post-item__title-link\" href=\"https:\/\/cyberscoop.com\/cryptocurrency-laundering-hearing-razzlekhan\/\"> \u2018Razzlekhan\u2019 released on bond, husband detained ahead of cryptocurrency laundering trial <\/a> <\/h3>\n<div class=\"post-item__byline\"> <span class=\"post-item__author\"> <span>By <\/span> <a class=\"post-item__author-link\" href=\"https:\/\/cyberscoop.com\/author\/tonya-riley\/\"> Tonya Riley <\/a> <\/span> <\/div>\n<p><!-- .byline --> <\/header>\n<p><!-- .post-item__meta --> <\/article>\n<article class=\"post-item post-item--popular-stories-cards \">\n<figure class=\"post-item__thumbnail\"> <a class=\"post-item__thumbnail-link\" href=\"https:\/\/cyberscoop.com\/bitfinex-cryptocurrency-theft-arrests-doj\/\" tabindex=\"-1\"> <img data-recalc-dims=\"1\" loading=\"lazy\" width=\"252\" height=\"168\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-4.jpg?resize=252%2C168&#038;ssl=1\" class=\"attachment-ratio-16-9-sm size-ratio-16-9-sm wp-post-image\" alt=\"Justice Department DOJ seal\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-8.jpg 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-8.jpg?resize=300,200 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-8.jpg?resize=768,512 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/convicted-bitfinex-bitcoin-launderer-freed-from-prison-thanks-trump-law-8.jpg?resize=600,400 600w, 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