Bitfinex Attacker Released After 14 Months, Reactions Increased

Exciting developments are happening in the world of cryptocurrency. Ilya Lichtenstein, who accepted charges related to the Bitfinex hack that occurred in 2016, was sentenced to five years in prison but was released only 14 months later. This situation has sparked significant discussions in the crypto community.

Lichtenstein attributed his release, announced via social media, to the First Step Act law passed in the United States in 2018. This law aimed at reforming incarceration and sentencing processes. He expressed his determination to contribute positively to the field of cybersecurity.

The reaction of the crypto community was divided. While some users shared congratulatory messages regarding his release, others criticized the lack of justice being served. Most investors questioned the fate of the Bitcoin stolen from Bitfinex. In the attack on the Bitfinex exchange in August 2016, a total of 119,754 Bitcoin was stolen. This amount, valued at approximately 71 million dollars at the time, has exceeded 10 billion dollars at current prices.

Authorities seized around 94,000 Bitcoin after the attack and initiated the necessary procedures for these assets to be returned to Bitfinex in January 2025. Lichtenstein admitted to being involved in a money laundering conspiracy and admitted to carrying out the attack. It was reported that he converted approximately 25,000 Bitcoin into various cryptocurrencies and physical gold, with the majority of the remaining being recovered by the U.S. government.

Lichtenstein's wife, Heather "Razzlekhan" Morgan, received an 18-month prison sentence and was released after approximately 8 months. Lichtenstein's release has revived discussions about the cryptocurrency-related pardons during the Trump administration. Trump had pardoned figures like Ross Ulbricht, Arthur Hayes, and Changpeng Zhao; however, it was noted that Lichtenstein was not pardoned. This situation reignited debates on legal equality and deterrence in the cryptocurrency market.