Bitfinex Hack Convict Released Early Under 2018 First Step Act

Bitfinex Hack Convict Released Early Under 2018 First Step Act

Ilya Lichtenstein, sentenced in 2024 for laundering Bitcoin from the 2016 Bitfinex hack, has been released early under the 2018 First Step Act, a U.S. justice reform signed by Donald Trump.

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Fact Check
The evidence strongly supports the truthfulness of the statement. The most compelling piece of evidence is the primary source tweet from Heather 'Razzlekhan' Morgan, one of the individuals convicted, who directly states she was released from prison early due to the First Step Act. This claim is independently corroborated by multiple news outlets reporting on the early release of her co-conspirator, Ilya Lichtenstein. A reputable crypto-focused publication, DL News (syndicated on Yahoo News), reports that Lichtenstein also credited the First Step Act for his early release. This narrative is further echoed by several other news sources and social media accounts, creating a consistent and widespread account of the event. There is no credible contradictory evidence provided. The source from Chainalysis is highly authoritative but is not relevant to the specific claim of an early release, as it focuses on the sentencing. Other sources are either irrelevant entertainment content or, in one case, a demonstrably fabricated article with a future date in its URL. The convergence of a direct statement from a primary source and consistent reporting from multiple secondary sources provides a high degree of confidence in the statement's accuracy.
Summary

Ilya Lichtenstein, convicted in 2024 for conspiracy to launder money tied to the 2016 Bitfinex hack, has been released early from prison under the First Step Act, enacted in 2018 under then-President Donald Trump. He had been serving a five-year sentence. His wife, Heather Morgan, received a shorter term and was released in 2025.

Terms & Concepts
  • First Step Act: A U.S. federal criminal justice reform law signed in 2018 that reduces certain mandatory sentences and promotes rehabilitation.
  • Money laundering: The illegal process of concealing the origins of funds obtained through criminal activity.