The man responsible for one of the biggest online robberies in history has been released from prison much sooner than expected. Ilya Lichtenstein, who was sentenced to five years in November 2024 for his part in the 2016 Bitfinex theft, confirmed he was allowed to leave jail last week.
While he was originally supposed to serve 60 months, federal records show he only spent about 14 months behind bars. He has now been moved to “home confinement.” This means he is finishing his sentence under house arrest at home instead of in a cell.
Regarding the move, a Trump administration official explained to CNBC that Lichtenstein has already completed a “significant” portion of his time. The official noted that the change is in line with government rules and “consistent with statute and Bureau of Prisons policies.”
The Law That Opened the Doors
Lichtenstein’s early exit is thanks to a law called the First Step Act. This was a plan signed by President Donald Trump in 2018 to help certain prisoners get out early if they show good behavior or take part in special programs.
Lichtenstein didn’t waste any time sharing the news. He posted on X (formerly Twitter), saying, “Thanks to President Donald Trump’s First Step Act, I have been released from prison early.” He also mentioned that he wants to use his skills for good now, claiming he is “committed to making a positive impact in cybersecurity.”
A $10 Billion Crime
The crime itself was enormous. Back in 2016, Lichtenstein broke into Bitfinex, a type of digital bank where people trade Bitcoin. He managed to steal 119,754 Bitcoin. While that was worth about $71 million at the time, if he had kept it until today, that loot would be worth more than $10 billion.
Reportedly, he exploited a weakness in how the exchange double-checked withdrawals.
Normally, the system required a second person to sign off on a transfer, but Lichtenstein found a way to bypass this and get the power to initiate transactions without the necessary third-party authorization.
Lichtenstein and his wife, Heather Morgan, went to great lengths to hide the money. They used fake identities and even bought physical gold coins. In a strange twist, Morgan reportedly buried the gold underground to keep it hidden.
This case has been a major focus for investigators for years. As reported by Hackread.com in February 2022, the US Department of Justice carried out its largest-ever financial bust at the time, seizing $3.6 billion worth of Bitcoin from the couple. Later, in August 2023, the couple pleaded guilty to their roles in the theft.
The couple was eventually caught because of something as simple as Walmart gift cards. They used the stolen funds to buy the cards, which were traced back to them. The government eventually recovered about 94,000 Bitcoin, but this case remains a landmark in the world of online crime.
