The 2016 Bitfinex exchange heist that shocked the crypto world, with the main suspect Ilya Lichtenstein, recently received a sentence reduction under the US "FIRST STEP ACT" and was released early. What does this mean? Let's review this case.

First, the numbers: the 119,756 BTC stolen at that time were valued at over $7 billion USD. At current prices, this asset would be worth approximately 45 billion RMB. Imagine such a huge amount weighing on one person—would anyone be able to stay calm?

But here’s the reality: the US Department of Justice previously charged Ilya and his girlfriend, accusing them of controlling wallets containing these stolen funds. The key point is that these wallets had already been frozen by the DOJ. Being released from prison does not mean they can freely move the money. The US government will not allow these assets to easily flow into the market and will continue to monitor them.

Where are the real risks? First, their actual operational space is indeed limited. Second, even if there is a chance to sell, such a level of assets would definitely be sold in batches; it’s impossible to dump everything into the market at once, or it would trigger judicial intervention. Market impact would also be diluted.

From a market perspective, the sudden activity of such dormant huge funds has always been a hot topic in the crypto community. But now, with stricter environmental and regulatory conditions, it’s no longer the wild growth era of early years. Even if this money eventually flows into the market, it will be subject to multiple constraints. Instead of worrying about a large dump, it’s better to focus on the DOJ’s next steps—this is the key to determining the final destination of these funds.