bitfinexhack

Bitfinex hacker Ilya Lichtenstein credits Trump’s First Step Act for early prison release
The U.S. hacker pleaded guilty to stealing and laundering nearly 120,000 bitcoin from cryptocurrency exchange Bitfinex in 2016.
Ilya Lichtenstein, who was sentenced to five years in prison in November 2024 after pleading guilty to charges tied to the 2016 Bitfinex cryptocurrency exchange hack, was released from prison after just 14 months behind bars.
“Thanks to President [Donald] Trump's First Step Act, I have been released from prison early,” Lichtenstein said on X on Thursday. “I remain committed to making a positive impact in cybersecurity as soon as I can.”Trump signed the First Step Act, a prison and sentencing reform bill proposed and approved by legislators in 2018, purportedly aimed at saving taxpayers money.
Lichtenstein thanked his supporters and criticized his “haters,” writing, “I look forward to proving you wrong,” while reiterating that he “remains committed to making a positive impact in cybersecurity.”While some congratulated Lichtenstein on X, others were less forgiving. An onchain investigator who goes by Specter on X posted a meme saying “crime is legal”, while CB32 asked “how much did you pay?" And Cryptoenthusiast asked, "Where's the 120,000 stolen from Bitfinex?”
Lichtenstein and his wife, rapper Heather “Razzlekhan” Morgan, were arrested in February 2022. Morgan received an 18-month sentence and was released in October after serving roughly eight months.
The Bitfinex hack in August 2016 resulted in the theft of 119,754 BTC, worth approximately $71 million at the time, but more than $10 billion at current prices. Authorities recovered about 94,000 BTC, and in January 2025, U.S. prosecutors filed a motion for the recovered BTC to be returned to Bitfinex.
Lichtenstein pleaded guilty to a money laundering conspiracy charge and admitted to the hack of crypto assets. He also claimed his wife had nothing to do with the crime. He managed to convert about 25,000 BTC into other cryptocurrencies and into physical gold coins, the majority of which the U.S. government recovered, according to a TRM report.
Lichtenstein’s release comes as President Trump’s use of executive clemency in crypto-related cases has drawn criticism, though Lichtenstein himself was not pardoned. Between January and October, Trump pardoned Silk Road founder Ross Ulbricht, Arthur Hayes and three other BitMex exchange cofounders convicted of Bank Secrecy Act violations, and Binance founder Changpeng “CZ” Zhao, who had pleaded guilty to enabling money laundering at the world’s largest exchange.#TRUMP #bitfinexhack @CZ #CZWisdom $TRUMP

Ilya Lichtenstein, one of the most talked-about names in the crypto world, is back in the news. The hacker, who was accused of stealing nearly 120,000 Bitcoins from the Bitfinex exchange in 2016, was released long before his 5-year sentence was completed.
⚡ What's the 'magic' behind the quick release?
The "First Step Act" signed by former US President Donald Trump played a key role in Liechtenstein's unexpected release. Liechtenstein took advantage of the opportunity to reduce his sentence based on good behavior under this law.
🔍 Bitfinex Hack Diary at a Glance:
Amount stolen: 119,754 Bitcoins (with a current market value of more than $10 billion or 80 thousand crores of rupees!).
Rescue operation: The US government has managed to recover about 94,000 bitcoins.
Mystery: About 25,000 bitcoins are still missing.
Sentence: Liechtenstein only served 14 months of a 5-year prison sentence.
🗣️ "From thief to cybersecurity specialist?"
After his release, Liechtenstein said he now wants to do positive work in the cybersecurity sector. However, the crypto community is not taking this announcement lightly. Many people are asking the question - "Is it fair to steal billions of dollars and get away with taking advantage of Trump's law?"
⚖️ Why is this a concern?
This incident could send the wrong message to crypto criminals. If big criminals get away with it easily in the face of politics and the law, the debate over digital asset security and regulation will only intensify.
What are your thoughts? Is the release of a billion-dollar hacker taking advantage of Trump's law a bad sign for the crypto world? Let us know in the comments below! 👇
#Trump #BTC #Security

1️⃣ The Attack That Shook the Crypto World

It was August 2, 2016, and Bitfinex was one of the largest cryptocurrency exchanges in the world. Then, in a single moment, 119,756 BTC vanished—worth $72 million at the time.

✔️ Hackers exploited a vulnerability in Bitfinex’s multi-signature wallets—bypassing security measures and draining funds.

✔️ The stolen Bitcoin was moved in small transactions—making it harder to track.

✔️ The crypto market crashed—Bitcoin’s price dropped 20% overnight.

2️⃣ The Warning Signs No One Saw

Bitfinex had been using multi-signature wallets provided by BitGo, a security firm. But there was a flaw in the system:

🚨 BitGo had the ability to approve transactions—meaning hackers only needed to compromise one system instead of multiple keys.

🚨 No one expected such a large-scale attack—Bitfinex had never suffered a breach before.

🚨 The exchange failed to react quickly—allowing hackers to move funds before security measures kicked in.

3️⃣ The Aftermath: Chaos and Recovery

✔️ Bitfinex issued a 36% haircut to all users—meaning every account lost 36% of its balance to cover the losses.

✔️ The exchange created BFX tokens—giving affected users a way to recover their funds over time.

✔️ Bitcoin’s price eventually rebounded—but trust in centralized exchanges was shaken.

4️⃣ The Hunt for the Stolen Bitcoin

✔️ The stolen BTC remained untouched for years—until 2022, when U.S. authorities seized 94,000 BTC linked to the hack.

✔️ A couple was arrested for laundering the funds—they had been slowly converting Bitcoin into cash using fake identities.

✔️ The recovered Bitcoin was worth $3.6 billion—making it one of the largest crypto seizures in history.

5️⃣ Lessons Learned

✔️ Multi-signature wallets aren’t foolproof—security must evolve constantly.

✔️ Centralized exchanges are vulnerable—self-custody remains the safest option.

✔️ Crypto crime doesn’t disappear—even years later, stolen funds can resurface.

#BitfinexHack #CryptoSecurity #BitcoinHistory #Write2Earn

This is just the beginning—Season Two will uncover the real stories that shaped crypto history. 🚀🔥 Let me know if you need any refinements!