Ilya Lichtenstein Gains Early Release, Credits Trump’s 2018 First Step Act

• Lichtenstein was freed early from a five-year sentence under federal sentencing provisions.
• Trump signed the bipartisan First Step Act in 2018, reforming sentences and reducing recidivism.
• President Trump pardoned two crypto leaders in 2025 amid regulatory shifts.

Ilya Lichtenstein, a Russian-U.S. national previously sentenced for hacking Bitfinex, has thanked President Donald Trump for an early release. The 38-year-old hacker, previously sentenced to five years’ imprisonment, was released early under federal sentencing provisions.

Lichtenstein Benefits from the 2018 FSA Law

On the second day of 2026, Lichtenstein thanked President Trump for enacting the First Step Act (FSA) in 2018. The FSA, which was passed through a bipartisan effort, helped Lichtenstein get an early release.

“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,” Lichtenstein stated.

According to a Trump administration official, Lichtenstein served a significant time for his sentence. As such, Lichtenstein is currently in home confinement consistent with statute and Bureau of Prisons policies.

He has benefited from his commitment to cooperate with the government to return the stolen funds from Bitfinex. Furthermore, the FSA awards prisoners with points over time to facilitate early releases and reduce penalties. As such, the U.S. government reduces prison congestion and the related challenges.

Justice or Injustice?

Lichtenstein’s wife, Heather Morgan, previously served an 18-month sentence for helping launder the stolen 120,000 Bitcoins. She celebrated the early release of Lichtenstein amid mixed reactions from the crypto community.

Notably, the U.S. government seized about 94K BTC, and the court ordered restitution of the stolen funds to Bitfinex. However, about 20% of the stolen funds were never recovered as the two individuals had used sophisticated laundering techniques to evade modern blockchain analysis tools such as Chainalysis.

As such, the early prison release of Lichtenstein and his wife elicited mixed reactions from the crypto community due to suspicions of them holding stolen assets, potentially worth hundreds of millions of dollars. Their early prison release questioned the Justice motive of the hackers, who caused harm through stolen funds.

In the Name of President Trump?

Last year, Morgan posted a video thanking President Trump for her early release. However, a White House official later confirmed that Morgan’s commutation of her sentence was not influenced by the executive.

Instead, her early release from prison was ostensibly a normal procedure from the Bureau of Prisons. Morgan’s early release from prison was also not associated with the FSA like her husband, thus distancing her commutation from President Trump. 

In 2025, President Trump pardoned Ross Ulbricht, the founder of the defunct darknet marketplace Silk Road, and Changpeng Zhao (CZ), Binance co-founder. According to President Trump, the prior administration under Joe Biden regulated crypto through enforcement, thus driving investment overseas. 

Related: Bitfinex Hacker Faces 5 Years, Prosecutors Seek to Deter Crypto Crime