Ilya Lichtenstein, who pleaded guilty to money laundering in the Bitfinex hack case, was reportedly moved from prison to home confinement before completing his 60-month federal sentence. He credited the First Step Act, a 2018 law that lets eligible federal prisoners earn time credits. But the public reporting does not show the Bureau of Prisons’ calculation for his case, so it does not establish exactly how his placement was determined. Nor does home confinement mean he was pardoned or that his sentence was erased.
What happened in Lichtenstein’s case?
Lichtenstein pleaded guilty to conspiracy to commit money laundering in connection with the 2016 hack of cryptocurrency exchange Bitfinex. Heather Morgan also pleaded guilty. The U.S. Department of Justice said Lichtenstein transferred 119,754 bitcoin from Bitfinex to a wallet he controlled. In 2022, authorities seized about 95,000 bitcoin from wallets controlled by the defendants; the DOJ valued that bitcoin at about $3.6 billion at the time of seizure, not at today’s prices. The DOJ later reported seizing another approximately $475 million in funds tied to the hack. DOJ’s 2023 plea announcement and 2024 sentencing announcement describe the case.
On November 14, 2024, Lichtenstein was sentenced to 60 months in federal prison and three years of supervised release. On January 3, 2026, TechCrunch reported that he said he had been released early “thanks to President Trump’s First Step Act.” The outlet also reported an administration official’s description of him as being on home confinement, consistent with statute and Bureau of Prisons policies. TechCrunch said direct administration involvement was unclear. TechCrunch’s report does not provide his individual BOP credit calculation or placement record.
How the First Step Act can affect federal custody
The First Step Act became law on December 21, 2018. It includes more than one provision affecting time in custody. The Bureau of Prisons (BOP) says eligible inmates can earn time credits by completing assigned, qualifying recidivism-reduction programs and productive activities. Subject to eligibility requirements, BOP may apply those credits toward prerelease custody in the community or toward supervised release. The law also changed rules for good-conduct time; that is a distinct provision from earned time credits. See the BOP First Step Act overview and its First Step Act FAQ.
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These are general rules, not proof of what happened in an individual case. The public account supports saying that Lichtenstein credited the Act and that an official described him as being on home confinement. It does not establish how many credits he earned, which specific provision governed his placement, or the precise BOP decision.
Home confinement is not a pardon or a completed sentence
Home confinement is a form of custody in the community, not the same thing as having a conviction or sentence wiped away. The reported status therefore does not show that Lichtenstein had completed his sentence. His sentence also included three years of supervised release, which is a separate part of the court-imposed sentence following imprisonment.
Several legal routes can change where or how a person serves a sentence, but they are not interchangeable:
| Route | What it means | What is established here |
|---|---|---|
| First Step Act earned-time-credit placement | BOP can apply qualifying earned credits for eligible inmates toward prerelease custody or supervised release, subject to statutory conditions and BOP administration. | The law provides this framework; Lichtenstein credited the Act, and an official reportedly described him as on home confinement. His exact calculation is not public in the reporting cited. |
| Court-ordered sentence reduction | A court changes a sentence through an applicable legal process. | The cited reporting does not say a court reduced Lichtenstein’s sentence. |
| Pardon or commutation | A presidential act of clemency may forgive an offense or reduce a punishment, depending on the form of clemency. | The cited reporting does not say Lichtenstein received a pardon or commutation. |
| Completion of sentence | The person finishes the custodial term and any remaining sentence conditions still applicable. | Reported home confinement is not evidence that he had completed his sentence. |
Did President Trump personally order his release?
The available report does not establish that. Lichtenstein’s post credited the First Step Act, and an administration official reportedly said his home confinement was consistent with statute and BOP policies. TechCrunch said direct administration involvement was unclear. That is different from evidence that Trump personally ordered a release or granted clemency.
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