Ilya Lichtenstein Released Early Under Trump’s First Step Act After Bitcoin Heist
Hacker Ilya Lichtenstein, convicted of stealing billions in Bitcoin from the 2016 Bitfinex breach, has been released from prison early under the First Step Act—a 2018 criminal justice reform law signed during the Trump administration. Lichtenstein, who received a five-year sentence in 2023, announced his release on X, thanking the legislation for enabling his early release through earned time credits.
A Trump administration official confirmed Lichtenstein’s early release to CNBC, stating he had served "significant time" and was now on home confinement, in line with Bureau of Prisons policies. His wife, Heather Morgan—known online as "Razzlekhan" and dubbed the "Crocodile of Wall Street"—was also convicted in the scheme but served just 18 months before her own early release in October 2023.
The couple was arrested in 2022 for laundering approximately $4.5 billion in stolen Bitcoin, one of the largest cryptocurrency heists in history. Their case gained widespread attention, inspiring a Netflix docuseries and an upcoming film. Despite their convictions, both have now reentered public life, with Lichtenstein expressing plans to contribute to cybersecurity.
Source: https://www.theverge.com/news/853160/ilya-lichtenstein-released-razzlekhan-bitcoin-hack
Bitfinex cybersecurity rating report: https://www.rankiteo.com/company/bitfinex
"id": "BIT1767389750",
"linkid": "bitfinex",
"type": "Breach",
"date": "1/2026",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization's existence"{'affected_entities': [{'industry': 'Cryptocurrency',
'name': 'Bitfinex',
'type': 'Crypto Exchange'}],
'data_breach': {'data_exfiltration': 'Yes',
'sensitivity_of_data': 'High',
'type_of_data_compromised': 'Cryptocurrency (Bitcoin)'},
'date_detected': '2016',
'date_publicly_disclosed': '2022',
'description': 'Hacker Ilya Lichtenstein and his wife Heather Morgan were '
'involved in the theft and laundering of billions of dollars '
'worth of Bitcoin stolen in the 2016 hack of crypto exchange '
'Bitfinex. Lichtenstein was sentenced to five years in prison '
'but was released early under the First Step Act. Morgan was '
'sentenced to 18 months in prison and also released early.',
'impact': {'brand_reputation_impact': 'Significant',
'data_compromised': 'Bitcoin holdings',
'financial_loss': 'Billions of dollars in Bitcoin',
'legal_liabilities': 'Yes',
'systems_affected': 'Bitfinex crypto exchange'},
'investigation_status': 'Closed',
'motivation': 'Financial Gain',
'references': [{'source': 'CNBC'},
{'source': 'X (Twitter) Posts by Ilya Lichtenstein and Heather '
'Morgan'},
{'source': 'Netflix Docuseries'}],
'regulatory_compliance': {'legal_actions': 'Yes'},
'response': {'law_enforcement_notified': 'Yes'},
'threat_actor': 'Ilya Lichtenstein, Heather Morgan',
'title': 'Bitfinex Bitcoin Theft and Laundering Scheme',
'type': 'Data Breach, Financial Fraud, Money Laundering'}