Bitfinex Hack Mastermind Freed Before Trump Act 2018
Crypto journalist
Anas Hasan
Crypto journalist
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Ilya Lichtenstein, one of the masterminds of the $4.5 billion hack of the Bitfinex exchange in which nearly 120,000 bitcoins were stolen, has been released early under a law passed in President Donald Trump's first term.
The 35-year-old hacker praised Trump's First Action Act in an op-ed on Friday, expressing his determination to make a positive impact on cybersecurity and eager to prove his doubters wrong.
In the year The first measure, signed by Trump in 2018, allows inmates to receive early release through rehabilitation programs and productive activities.
From tech entrepreneur to federal criminal
Lichtenstein and his wife, Heather Morgan, were arrested in New York in February 2022 after authorities traced their fortunes to a crypto heist.
Morgan described herself in Forbes articles as an “economist, serial entrepreneur, software investor, and rapper” while secretly helping her computer programmer husband with the fortune stolen from Bitfinex, a public persona as a successful tech businesswoman.
Both pleaded guilty to money laundering, with Morgan facing an additional conspiracy to defraud charge.
Court records show the couple used false identities in small increments to evade detection and used sophisticated techniques to obscure digital traces of their ill-gotten wealth.
Cooperation ensures simple sentences
Morgan's attorneys successfully argued for time to serve in federal court in Washington, D.C., citing severe pretrial conditions, including surgical recovery and a covid-19 contract.
She remained free on a personal recognizance that allowed her to be released without bail until her sentencing hearing last year.
Morgan received an 18-month sentence and was released in October 2024 after serving eight months.
Their cooperation with U.S. authorities on other crypto charges reduced their prison terms from decades of potential for masterminding one of the largest crypto heists in history.
“It's over, and I'm very excited to soon be able to tell my story, share my thoughts, and tell you about the creative and other endeavors I've been working on,” Morgan said in a video posted on X summarizing their affair.
Trump's Crypto Clemency Wave Draws Political Fire
Liechtenstein's release comes as a broader leniency for crypto criminals under the Trump administration.
In the year In March 2025, Trump pardoned BitMEX co-founders Arthur Hayes, Benjamin Delon, Samuel Reed, and employee Greg Dwyer, all of whom were convicted in 2015. They pleaded guilty in 2022 to violations of the Bank Secrecy Act.
Binance founder Changpeng Zhao received a presidential pardon in October after pleading guilty to similar violations for failing to implement an effective anti-counterfeiting program on his exchange.
Trump has expressed interest in pardoning Keon Rodriguez, the CEO of privacy-focused Bitcoin wallet Samurai, who was sentenced to five years for money laundering in December.
During an Oval Office event on December 16, Trump told reporters:
“I've heard about it, I'll look into it. It sounds like your question, Rodriguez. We'll look into it, Pam,” he said, referring to U.S. Attorney General Pam Bondi, who attended the hearing.
California Gov. Gavin Newsom stepped up criticism of Trump's pardon strategy, launching a state-sponsored website in December to track what his office calls Trump's “high-profile criminals.”
The website Silk Road founder Ross Ulbricht was sentenced to life in prison for drug and money laundering for more than $214 million in illegal Bitcoin-backed drug sales, with newly released crime data showing a decline in major California cities.
This series of pardons and appeals has sparked significant political outrage, with crypto amnesty as part of a broader debate about corruption, public safety, and the expanding role of digital assets in American politics.
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