Bitfinex Hacker Lichtenstein Released Early, Involved in $10 Billion Theft
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 03 2026- Hack Overview: Lichtenstein exploited vulnerabilities in Bitfinex's internal authorization systems in 2016 to steal nearly 120,000 BTC, valued at over $10 billion today, marking one of the largest crypto thefts in history and impacting industry security trust.
- Early Release Reason: He was released early on January 2, 2026, due to his non-violent crime classification, qualifying for sentence reduction under the First Step Act, highlighting the influence of U.S. prison reform policies on the crypto sector.
- Industry Reaction: His release has sparked strong reactions within the crypto industry, with critics arguing it undermines deterrence against major crimes and may encourage further hacking, while supporters believe it reflects necessary leniency and reform for non-violent offenses.
- Future Plans: Lichtenstein has stated he plans to transition into cybersecurity and focus on lawful work, indicating a desire to rebuild his personal image, which also reflects a changing attitude within the crypto industry towards former hackers.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
