Infamous Bitcoin Hacker Walks Free Years Ahead of Schedule — Credits Trump Pardon

Justice takes a crypto turn as one of Bitcoin's most notorious figures gets early release — and points straight to presidential intervention.

The Unlikely Get-Out-of-Jail Card

Forget appeals and good behavior. This early exit came stamped with a political signature, cutting through bureaucratic red tape like a hot wallet through cold storage. The hacker, once facing years behind bars, now credits a controversial pardon for the sudden freedom.

A New Chapter or Same Old Script?

The crypto community watches with mixed fascination. Some see redemption; others spot a dangerous precedent. It's the ultimate test of whether blockchain's immutable ledger can coexist with mutable human justice — where a single signature can rewrite years of legal proceedings. Wall Street bankers would kill for that kind of forgiveness on their balance sheets.

What's clear? In the volatile intersection of technology and politics, even the most secure systems have a backdoor. The only thing more unpredictable than Bitcoin's price might just be who gets to walk free next.

Bitcoin Hacker’s Release Credited To First Step Act

According to Lichtenstein’s public posts and interviews, he credited his early freedom to the First Step Act, the prison-reform law signed by US President Donald TRUMP in 2018.

Reports say he was placed on home confinement after qualifying for earned time credits and program participation, a process allowed under federal rules.

He posted on social media a short message thanking Trump and saying he hopes to work in cybersecurity going forward.

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.

To the supporters, thank you for everything. To the haters, I look forward to proving you wrong.

— Ilya Lichtenstein (@cipherstein) January 2, 2026

The Theft And The Sentence

Based on reports from federal prosecutors, the Bitfinex breach involved nearly 120,000 bitcoin, which at the time was worth roughly $71 million and later ballooned in value as markets rose.

Lichtenstein pleaded guilty and was sentenced to five years in US District Court on November 14, 2024. The Department of Justice described the laundering operation as complex and said prosecutors recovered the bulk of the stolen funds.

Reports have disclosed that Lichtenstein and his then-partner Heather Morgan used layered transfers, fake identities, and conversions across services to obscure the source of funds.

The couple were arrested in 2022 after agents traced a set of private keys and other evidence back to their accounts.

Morgan, known online as Razzlekhan, pleaded guilty as well and received a shorter sentence; she was also reported to have been released early.

The case drew wide attention because agents later seized a large portion of the assets tied to the hack.

Federal filings and news agencies say investigators recovered more than 90% of the stolen Bitcoin and the government seized billions in crypto-linked assets, a recovery that prosecutors called one of the largest in US history.

The sale and custody of those assets remain part of ongoing administrative steps. Many legal experts and members of the public have pushed back on the timing and optics of the early release, arguing that cases involving billions in stolen property raise unusual questions about deterrence and fairness.

Featured image from Unsplash, chart from TradingView