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Bitfinex Hacker Released Early

🔓 Bitfinex Hacker Early Release
Early Release Announcement: Ilya Lichtenstein, who pleaded guilty to money laundering conspiracy related to the 2016 Bitfinex hack, announced his early release from prison. In a post on X, he stated verbatim: “Thanks to President Trump’s First Step Act, I have been released from prison early.” He added: “I remain committed to making a positive impact in cybersecurity as soon as I can.” The First Step Act, signed in 2018, provides opportunities for reduced sentences and early release. Lichtenstein was sentenced to five years in 2024 after serving approximately 14 months, and records indicate a release date in February with current home confinement status.
Bitfinex Hack Details: The 2016 hack of cryptocurrency exchange Bitfinex resulted in the theft of 119,754 bitcoin, valued at about $71 million at the time. Lichtenstein admitted to executing the hack alone and conspiring to launder the proceeds with his wife, Heather Morgan. Authorities seized bitcoin worth $4 billion during the investigation, marking the largest such recovery in U.S. history. The couple pleaded guilty in 2023 to money laundering conspiracies, with Lichtenstein facing charges of conspiracy to commit money laundering and to defraud the United States.
Wife's Case Context: Heather Morgan, known as Razzlekhan, received an 18-month sentence in 2024 for her role in the money laundering conspiracy and announced her early release in October 2025. A White House official confirmed that Lichtenstein has served significant time and is on home confinement consistent with Bureau of Prisons policies. No involvement of the White House in individual sentencing decisions was noted for either case. Approximately 25,000 bitcoin from the hack remain unrecovered. Read More.
️ On today's Top Picks:
- 🤝 Aave Labs to share non-protocol revenue with token holders.
- 🪂 Fogo to launch airdrop on January 13th.
- 🔵 SEC Commissioner Caroline Crenshaw resigns.
- ⚠️ ZachXBT: ~$107K drained from hundreds of wallets.
Read time: ⏰ 4 minutes
Crypto News
• ⭐️ Bitfinex $LEO hacker Ilya Lichtenstein to be released from prison early; thanks US President Trump's First Step Act; Lichtenstein was sentenced to five years in prison in November 2024.
• ⭐️ Aave $AAVE founder Stani Kulechov says Aave Labs will share revenue generated outside the protocol with token holders; to soon launch a formal proposal outlining specific structures.
• Ethereum $ETH co-founder Vitalik Buterin posts "Welcome to 2026! Milady is back" on X; also changes his profile picture back to a Milady NFT; the collection’s floor price has since increased.
• Coinbase $COIN co-founder & CEO Brian Armstrong outlines 2026 top priorities: growing the "everything exchange" globally, scaling stablecoins & payments, and bringing the world onchain.
• ICYMI Trump Media & Technology Group $DJT to launch & airdrop new token to shareholders; to launch on Crypto[.]com's Cronos $CRO blockchain.
• ICYMI Tether acquires 8,888 Bitcoin $BTC (~$780M); now holds ~96K BTC (~$8.4B).
• ICYMI Hyperliquid $HYPE Labs unstakes 1.2M HYPE (~$31M); to be distributed to Hyperliquid Labs team members on January 6th; all distributions to take place on the 6th of the month going forward.
Alpha
• Blockscout distributes Merits bonus for every badge held; snapshot was taken on January 1st.
• ICYMI Fogo $FOGO completes first round of snapshots for Flames Season 1.5; snapshot includes Fogo Fishing, Valiant LPing, & USDC transfers; Season 1.5 is still ongoing.
• ICYMI Cascade to raise the pre-allocation cap for Cascade’s Liquidity Strategy (CLS) to $2M on January 6th; eligible users can deposit to earn Cascade Points.
• ICYMI OpenEden $EDEN launches yield-bearing stablecoin $USDO on Kaia; also launches $cUSDO on Solana $SOL.
• ICYMI Rainbow $RWBW launches prediction markets for all users on iOS & Android; feature powered by Polymarket $POLY; Rainbow points program is ongoing.
Airdrops
• ⭐️ Fogo $FOGO to launch airdrop on January 13th; Fogo Flames (points) holders & more will be eligible.
• ICYMI Base $BASE distributes winnings from its Holiday Rewards campaign; users can check the Base app to see if they won.
• ICYMI Lighter $LIT launches airdrop; Lighter Points holders are eligible; tokens automatically distributed to wallets.
• ICYMI Espresso $ESP launches airdrop registration, eligibility checker; to add additional airdrop eligibility criteria soon; to launch airdrop claim in early 2026.
• ICYMI Brevis $BREV launches airdrop registration; eligibility criteria has yet to be revealed; registration to close on January 3rd.
• ICYMI Mezo $MEZO launches airdrop registration; Mezo Mats (points) holders are eligible.
Finance News
• US CFTC Chair Selig appoints Amir Zaidi as Chief of Staff; Zaidi was at the CFTC from 2010 to 2019 and oversaw the launch of CFTC-regulated Bitcoin futures.
• ⭐️ US SEC Commissioner Caroline Crenshaw resigns; Crenshaw was the agency's sole Democrat and a vocal crypto critic.
• US President Trump delays tariff increases on upholstered furniture, kitchen cabinets, & vanities for 12 months.
• US Department of Commerce issues permit to $TSMC to import US-made chip-making equipment into China for its Nanjing fab; Samsung $005930.KS & SK hynix $000660.KS were also given import licenses.
• ICYMI US President Trump to soon announce a nominee for the Federal Reserve Chair; prediction markets forecast an ~87% chance a nominee is announced by the end of January.
• ICYMI US Federal Reserve releases December FOMC minutes; shows divisions over further rate cuts after third consecutive 25 bps reduction to 3.5%-3.75% range.
Security and Exploits
• ⭐️ ZachXBT discovers ~$107K drained from hundreds of wallets; a root cause has yet to be identified.
• Scam Sniffer publishes 2025 Crypto Phishing Report; highlights losses of ~$83M (-83% YoY) from 106,616 victims (-68% YoY).
• PackShield: December 2025 saw ~26 major crypto exploits resulting in losses of ~$76M; November 2025 saw losses of ~$194M.
• ICYMI Lighter $LIT users were temporarily unable to withdraw funds due to a "Too many L2 Withdrawals” error, though the issue has since been resolved; ~$250M was withdrawn from Lighter 24 hours after its airdrop.
• ICYMI SlowMist publishes its 2025 Blockchain Security & AML Annual Report; also publishes its 2025 Q4 MistTrack Stolen Funds Analysis.
Token Unlocks
• Sui $SUI / ~$61M / JAN 01st
• EigenCloud $EIGEN / ~$13M / JAN 01st
• Ethena $ENA / ~$9M / JAN 02nd
• Ethena $ENA / ~$41M / JAN 05th
⭐️• Hyperliquid $HYPE / ~$306M / JAN 06th
Sourced from Tokenomist
Funding
• ICYMI Erebor Bank reportedly raises $350M in funding led by Lux Capital.
• ICYMI Architect raises $35M in Series A funding led by Miami International Holdings $MIAX and Tioga Capital.
• ICYMI Tron Inc $TRON raises $18M in Strategic funding from Justin Sun.
The Degen Farmer
Top stablecoin yield farms of the day, more than $3,000,000 in TVL. DYOR and step up your farming game!
| PROTOCOL | ASSETS | APY |
|---|---|---|
| USDC | 3272.03% | |
| IUSD | 43.04% | |
| USDC | 38.42% | |
| LVUSDCUSDC | 20.67% | |
| HALALUSDC | 18.50% | |
| USD1USDC | 17.93% | |
| USD₮0 | 16.56% | |
| KODISAIL.RUSDE | 16.37% |
🌿 OpenEden: Tokenized Real-World Assets | ![]() |
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🚀 Latest Updates: OpenEden recently outlined its strategic blueprint to expand tokenization with new offerings like tokenized funds, multi-strategy yield tokens, structured products, regional stablecoins, and cross-border payment networks. This builds on earlier fundraising with YZi Labs in 2024. A new strategic investment round from Ripple, Lightspeed Faction, Anchorage Digital Ventures, and others will support growth of its end-to-end RWA tokenization-as-a-service platform for issuing and managing regulated tokenized products.
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That’s it for today’s edition! See you soon.


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