Bitcoin hacker steals 10 billion, only 14 months! Bitfinex theft sparks controversy over Trump's release

Bitfinex Bitcoin Hacker Suspect Ilya Lichtenstein Released After Serving 14 Months, Thanks to the First Step Act Signed by Trump. In 2016, Bitfinex was hacked, losing 119,754 BTC (worth over $10 billion today), with 94,000 recovered and 25,000 unaccounted for. A Netflix documentary reveals their absurd lifestyle, sparking legal controversy.

The 119,754 BTC Cross-Border Theft Case Details

In August 2016, cryptocurrency exchange Bitfinex was hacked, and approximately 119,754 bitcoins were stolen, with a market value of about $71 million at the time; based on today’s prices, it exceeds $10 billion, making it one of the largest Bitcoin thefts in history. The case remained unsolved for years until February 2022, when the U.S. Department of Justice arrested Lichtenstein and Morgan, revealing the full scope of this multi-year crime involving a complex money laundering network.

Lichtenstein admitted to hacking into the Bitfinex system and orchestrating long-term money laundering, converting some of the Bitcoin into other cryptocurrencies and physical gold. The couple, seemingly living an absurd lifestyle, was a New York pair who could remotely control the Hong Kong-based Bitfinex exchange, astonishing law enforcement with their sophistication. According to investigations, about 94,000 BTC have been recovered by U.S. authorities, while approximately 25,000 BTC remain unaccounted for. In January 2025, prosecutors filed a motion to return the recovered Bitcoin to Bitfinex.

The Netflix documentary Biggest Heist Ever exposes their double lives. They frequently post silly videos on Instagram, from rap performances to bizarre selfies, seemingly just social media enthusiasts on the fringe. Morgan, under the pseudonym Razzlekhan, calls herself “Crocodile of Bezos,” producing low-budget hip-hop videos and creating an absurd public persona online.

Three Major Suspicious Points in the Bitfinex Bitcoin Hacker Case

Father as the Hidden Mastermind: The whistleblower in the documentary suggests Lichtenstein’s father is a notorious figure in hacking circles and may be the mastermind behind the scenes.

The Fate of 25,000 BTC: The recovered 94,000 BTC accounts for only 78.5% of the total; the whereabouts of the remaining 25,000 BTC remain a mystery.

Spouse’s Involvement: Lichtenstein repeatedly emphasized that his wife was not involved in the hacking, only in subsequent financial transactions, but her 18-month sentence has raised questions.

14 Months in Prison and Early Release Spark Justice Debate

In November 2024, Lichtenstein was sentenced to five years in prison for conspiracy to commit money laundering and related charges. However, he was recently released after serving only 14 months, sparking strong controversy within the crypto community. He attributed this early release to the First Step Act signed by President Trump.

The First Step Act, signed by Trump in 2018, is a prison and sentencing reform law aimed at reducing sentences for non-violent offenders, lowering recidivism, and saving costs for taxpayers. It allows some inmates to be released early for good behavior or meeting certain criteria. Lichtenstein was one of the beneficiaries.

After his release, Lichtenstein posted on X: “Thanks to President Trump for signing the First Step Act, I am able to regain my freedom early. I will actively contribute to cybersecurity in the future. Thanks to supporters, and to critics, your skepticism will be proven wrong.” This statement immediately sparked polarized reactions.

Some on social media congratulated him on regaining freedom, believing he had already been punished and cooperated with investigations to recover most of the stolen funds, deserving a second chance. But many criticized the leniency. An on-chain investigator sarcastically posted a meme on X saying “Crime is legal,” mocking the absurdity of stealing $10 billion worth of assets and serving only 14 months.

Morgan, arrested alongside her husband in 2022, was sentenced to 18 months but served about 8 months and was released in October 2024. Lichtenstein repeatedly emphasized that his wife was not involved in hacking, only in subsequent financial transactions. However, Morgan’s high-profile rap performances and flaunting of wealth on social media have raised public doubts about her role.

Trump’s Pardons Controversy and Crypto Justice Standards

At the time of Lichtenstein’s release, Trump was under scrutiny for issuing pardons in several cryptocurrency-related cases. Although Lichtenstein himself was not pardoned but released early under the First Step Act, Trump’s pardons of Silk Road founder Uli Ubricht, BitMEX co-founder, and Binance founder CZ, among others, have led to questions about whether the U.S. justice system is too lenient on crypto crimes.

Does this judicial leniency encourage more crypto crimes? Critics argue that stealing $10 billion worth of assets and serving only 14 months severely violates the principle of proportional punishment. Supporters contend that Lichtenstein actively cooperated with investigations, helped recover most of the stolen funds, and that the First Step Act aims to give non-violent offenders a chance at rehabilitation, which should be distinguished from political pardons.

From the absurd daily life depicted in Netflix to the global financial order-shaking theft, the Bitfinex Bitcoin hacker case reflects the bizarre world of cryptocurrencies and prompts deep reflection on justice, ethics, and power dynamics. The Netflix documentary Biggest Heist Ever is titled in Hong Kong as “The Ultimate Crypto Scam: Hacker Couple,” and in Taiwan as “The Biggest Money Laundering Heist: Crypto Couple Bandit,” and is still available for viewing.