Theft of 120,000 BTC》Bitfinex hacker couple has been released early: Thank you, President Trump, Happy New Year

Bitfinex Hacker Ilya Lichtenstein’s Early Release Under the “First Step Act” Sparks Debate on Balancing Judicial Reform and Cybersecurity Defense
(Background: Washington Court Hearing in Bitfinex Hacker Case | “Money Laundering Couple” Wife Granted Bail of $3 Million, Husband Remains Detained)
(Additional Context: The Truth Behind the 120,000 Bitcoin Theft Case — New York Money Laundering Couple Admits to Attacking Bitfinex Hacker)

In 2016, Ilya Lichtenstein transferred nearly 120,000 Bitcoins from Bitfinex via keyboard, worth about $71 million at the time; ten years later, this asset has grown to $11 billion. Now, he has shifted from federal prison to house arrest, not due to a presidential pardon, but because of the sentence reduction credits provided by the “First Step Act” signed by Trump in 2018. This century-long theft case has thus resulted in an unexpected judicial outcome.

How House Arrest Became Reality

Lichtenstein was originally sentenced to 5 years in prison in November 2024, but after serving only about 14 months, he was transferred to house arrest. He posted on X platform thanking Trump and said:

Thanks to President Trump’s First Step Act… for those who dislike me, I look forward to proving you wrong.

His wife, rapper Heather Morgan (stage name “Razzlekhan”), was released earlier in October 2025. The couple turned their criminal case into a social stage, with Morgan calling Trump “Papa Trump,” saying her husband’s return home is “the best New Year’s gift.”

In 2018, the First Step Act was passed with bipartisan support during Trump’s first term. The law allows non-violent offenders to earn “good time credits” through education, vocational training, or other rehabilitation programs, which can reduce up to 54 days of sentence per year, and eligible individuals can be transferred to house arrest early. White House officials stated that this release was fully executed by the Bureau of Prisons according to existing regulations, not a presidential pardon.

The law was originally intended to ease over-incarceration and address systemic inequalities, but now it benefits high-tech criminals who steal billions of dollars, revealing potential imbalances in current sentencing structures when facing large-scale crypto crimes.

The $10 Billion Stolen Funds and Bitcoin Price

The U.S. government has recovered most of the stolen Bitcoin, but with Bitcoin (BTC) currently trading at $93,958, this asset still amounts to hundreds of millions of dollars. Lichtenstein plans to enter cybersecurity, transforming his hacker experience into career capital, while Morgan is reportedly preparing a new single. The couple is attempting to turn legal shadows into personal branding, further highlighting the intertwining of the crypto world and traffic economy.

This incident has sparked heated debate within the crypto community and investment circles. Advocates for judicial reform emphasize “equal treatment before the law,” arguing that Lichtenstein merely utilized existing legal mechanisms; opponents question, “As long as you understand coding, the cost of crime seems unbelievably low.” The stolen $11 billion, combined with just over a year of detention, is seen as a lesson in “punishment and reward asymmetry.”

The case also exposes gaps in regulation and sentencing: hackers can transfer massive amounts of funds across the blockchain worldwide, yet sentencing still follows traditional frameworks, making it difficult to accurately assess the social risks of tech crimes. Legal scholars point out that without dedicated provisions for high-value digital asset theft, similar sentence reduction clauses may continue to spark controversy.

In the current intersection of technology, justice, and politics, Lichtenstein’s early release acts as a mirror, reflecting the tension between prison reform’s original intent and the realities of high-tech financial crimes. Bitcoin’s soaring prices, systemic sentence reductions, and social manipulation weave a new narrative, leaving significant questions about how the justice system should address digital economic crimes. The case has concluded, but discussions on fair sentencing, cybersecurity defenses, and legal reforms are just beginning.