A notable chapter in crypto crime history closed quietly in early 2026. Ilya Lichtenstein, jailed for money laundering related to the 2016 hack of cryptocurrency exchange platform Bitfinex, was released early from prison. He revealed his release via X at 38 years old and attributed it to the First Step Act passed by President Trump. He was scheduled for release on February 9, 2026, according to the Federal Bureau of Prisons inmate locator.
Together with his wife, Heather Rhiannon “Razzlekhan” Morgan, he had entered a guilty plea in 2023 for his involvement in the Bitfinex hack after being arrested in February 2022.
The 2016 hack enabled him to make over 2,000 transactions, moving 119,754 bitcoin worth about $71 million at that time from Bitfinex to his wallet. About 94,000 bitcoin, worth about $3.6 billion in 2022, were recovered by law enforcement in one of the biggest bitcoin seizures in U.S. history.
The early release follows a broader pattern. Lichtenstein’s release comes on the heels of a spate of high-profile pardons and commutations related to cybercrime since Trump resumed the presidency. Trump pardoned Ross Ulbricht, the founder of the dark web marketplace Silk Road, just one day into his presidency.
In October, Trump pardoned Changpeng Zhao, the founder of the popular crypto exchange Binance, who had confessed to guilt in 2023 for facilitating money laundering on the exchange. The pardons and early releases related to crypto players are raising interest among compliance officers, who are waiting to see how the trend plays out in the coming year.
