Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Bitfinex 2016 Hack Saga Worth $5.8 Billion Finally Gets Resolution

Published 10/09/2024, 10:38 AM
Updated 10/09/2024, 02:30 PM
Bitfinex 2016 Hack Saga Worth $5.8 Billion Finally Gets Resolution
BTC/USD
-

U.Today - The U.S. District Court for the District of Columbia has stated that cryptocurrency exchange Bitfinex may be the only party eligible for restitution for the 119,754 BTC stolen in the infamous 2016 hack. This announcement follows the guilty plea of Ilya Lichtenstein and Heather Rhiannon Morgan, who were charged in 2022 with conspiracy to launder money and conspiracy to defraud the United States.

For those who may not know, Lichtenstein and Morgan allegedly used advanced hacking tools to infiltrate Bitfinex and conduct over 2,000 transactions to transfer the stolen Bitcoin to a personal wallet. They then laundered the funds through various means, including converting some into gold coins, which Morgan buried.

Since their arrest in February 2022, the U.S. government has recovered approximately 95,000 stolen BTC, valued currently at $5.89 billion, and an additional $475 million in related assets. Right now, these coins are located in the "bc1qazcm" address, belonging to the FBI, according to Arkham Intelligence.

Despite the magnitude of the theft, the U.S. government today announced that it is not aware of any individuals other than Bitfinex who qualify as victims under the Crime Victims' Rights Act (CVRA) or for restitution under the Mandatory Victims Restitution Act (MVRA).

It is likely due to the fact that the U.S. Department of Justice added that Bitfinex had previously compensated affected customers by issuing "BFX" tokens, all of which were redeemed by April 2017. This compensation suggests that no additional victims may be eligible for restitution, leaving Bitfinex as the only party entitled to recover the seized Bitcoin.

This article was originally published on U.Today

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.