The US government has announced that over $11 billion in seized Bitcoin, linked to the 2016 Bitfinex hack, will be returned to its rightful owners.
The US government has announced that over $11 billion in seized Bitcoin, linked to the 2016 Bitfinex hack, will be returned to its rightful owners.
| Key Takeaways: – The US government will return over $11 billion in seized Bitcoin to the rightful owners, linked to the 2016 Bitfinex hack. – Ilya Lichtenstein, the hacker behind the theft of 120,000 BTC, received a five-year prison sentence, while his partner, Heather Morgan, also faced legal consequences. |
In a recent filing, officials confirmed that the 120,000 BTC taken during the breach would be returned as “in-kind restitution.”
At the time of the Bitfinex hack, the stolen Bitcoin was valued at approximately $70 million. However, the surge in cryptocurrency prices over recent years has significantly increased the value of the compromised tokens. The hacker behind the attack, Ilya Lichtenstein, received a five-year prison sentence for his involvement in the theft.
The Bitfinex hack occurred on August 2, 2016, when Bitfinex, a cryptocurrency exchange, was breached, and 119,755 BTC was stolen. In February 2022, the US Department of Justice revealed it had recovered a large portion of the stolen funds.
On July 6, 2023, Bitfinex received a further recovery payment of $312,219.71 in cash and 6,917 BCH from the US Department of Homeland Security. This payment was part of an ongoing effort to recover funds, with the assets used to redeem Recovery Right Tokens issued to holders post-hack.
Further concerns were raised on October 25, 2024, when around $20 million worth of cryptocurrency seized from the hack was transferred from US government-controlled wallets. Lichtenstein and his partner, Heather Morgan, were sentenced in November 2024 after pleading guilty to charges of money laundering.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
