2026-01-02 13:38:53

Do you remember the 2016 Bitfinex hacking incident? The one where nearly 120,000 Bitcoins were stolen. Recently, there is a follow-up—hacker Ilya Lichtenstein has been released early.

Why was he able to get out early? The key is the First Step Act signed by U.S. President Trump in 2018. This law has a clause: as long as prisoners participate in rehabilitation programs and demonstrate good behavior, they can earn sentence reductions. Lichtenstein was sentenced to 5 years for assisting in money laundering of those 120,000 BTC (which was worth about $4.5 billion at the time), but with the help of this law, he has now been released.

This case actually reflects a problem: even when large digital assets are seized, recovery remains very difficult. For those involved in on-chain security, this is also a reminder—defense is always more practical than chasing after stolen assets.

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LayoffMiner

· 4h ago

Damn, is this guy really out like that? Good behavior can get you a sentence reduction, the logic is a bit off Honestly, it's still about not being able to catch up, defending is indeed more reliable than chasing the stolen goods 120,000 Bitcoins, how much is that worth now? This compensation is probably out of the question Trump's bill really opened a backdoor for hackers, it's too outrageous On-chain security really needs to be taken seriously, or you'll suffer big losses Chasing stolen assets is too difficult, better to strengthen the defenses This case just shows you, being robbed basically means being robbed for nothing, it's too hard to recover The US judicial system is right here, even if caught, you can get out early Good protection is the key, don't expect to recover anything Early release? That's too hasty, what about the victims?

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GateUser-00be86fc

· 4h ago

Wow, this guy moved 4.5 billion USD worth of Bitcoin early? The US judicial system is really something. Wait, where's the money? Where are the coins? That's the real issue. Defense is always more realistic than chasing stolen assets. I love hearing that, but it’s hard to accept. I just want to know where those 120,000 BTC are now. Did he turn them in? This case shows that catching hackers does not equal recovering the coins. There's a big difference.

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LiquidatedThrice

· 4h ago

Ha, if you can get a reduced sentence here, what about the 120,000 BTC? Did it go down the drain? Getting out of prison just by laundering money, I really can't understand this logic. It's true that defense is better than chasing the stolen property, but it feels a bit powerless. If this guy performs well, he can be released early, what about the stolen victims? It's all in vain. Damn, with such a legal system, it feels like everything can be laundered. Committing such a big case and still enjoying the benefits of the law, America is really incredible. Defense is always the last resort, just accept it.

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TokenAlchemist

· 4h ago

wait so he just... walked? 120k BTC stolen and dude gets early release because of good behavior lol. this is exactly why on-chain security isn't just some academic flex—it's literally the only asymmetric return vector that matters. prevention beats recovery every single time, full stop.

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CryptoWageSlave

· 4h ago

Wow, 120,000 Bitcoins just disappeared like that? Impossible to prevent everything Caught and still able to run, who can stop that? Still, you have to rely on not getting hacked Defense > recovering stolen assets, that's true, I believe it $4.5 billion just slipped away like that, as if nothing happened Trump's bill is a bit outrageous, criminals can also get reduced sentences through reform? On-chain security is really a never-ending job, always have to stay vigilant Rather than hoping to recover the stolen assets, it's better not to get hacked in the first place, that's the reality

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