Bitcoin

April

A U.S. government filing indicates Bitfinex could be the sole entity eligible for restitution from the massive 2016 Bitcoin theft. 
The filing by the U.S. government has confirmed that <a href="https://crypto.news/tag/bitfinex/" target="_blank">Bitfinex</a> could be the sole victim eligible for restitution concerning the notorious 2016 <a href="https://crypto.news/bitfinex-hacker-tactics-court/" target="_blank">hack</a> that resulted in the theft of <a href="https://crypto.news/bitfinex-confirm-64-million-hack-btc-usd-slumps/" target="_blank">approximately</a> 120,000 Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank">BTC</a>), now valued at $7.4 billion. 
According to the <a href="https://docs.dbnews.com/u/Bitfinex-Victim-Rights-Notification.pdf" target="_blank" rel="nofollow">court documents</a>, the U.S. Attorney for the District of Columbia stated, “The government is not aware of any person who qualifies as a victim under the Crime Victims’ Rights Act or for restitution under the Mandatory Victims Restitution Act, beyond perhaps Bitfinex.”&nbsp; 
This statement puts Bitfinex as the primary entity affected by the cyberattack, which <a href="https://crypto.news/btc-usd-exposed-to-further-downside-following-bitfinex-hack/" target="_blank">has left individual account holders</a> without recourse for claims against the seized assets.&nbsp; 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “According to information provided by counsel for iFinex, iFinex believes that it is the sole victim with sustained financial losses from the hack,” the document read. 
</blockquote> 
The filing indicates that restitution efforts will likely focus solely on Bitfinex, which has already engaged with law enforcement to recover stolen assets. 
Following this news, the exchange’s LEO (<a href="https://crypto.news/price/leo-token/" target="_blank">LEO</a>) token jumped over 50% to over $8. 
 You might also like: <a rel="" href="https://crypto.news/binance-ceo-responds-to-launchpool-accusations-discusses-crypto-scams/"> Binance CEO responds to launchpool accusations, discusses crypto scams </a> 
<h2 class="wp-block-heading" id="the-2016-bitfinex-hack">The 2016 Bitfinex hack&nbsp;</h2> 
The hackers — Ilya Lichtenstein and Heather Morgan — reportedly infiltrated Bitfinex’s systems and executed over 2,000 unauthorized transactions. 
Following the hack, the exchange <a href="https://crypto.news/bitfinex-decides-on-generalized-losses-issues-bfx-tokens/" target="_blank">compensated users</a> with BFX tokens, allowing them to redeem or convert these into equity shares of its parent company, iFinex. By April 2017, all BFX tokens had been redeemed, <a href="https://crypto.news/bitfinex-slowly-earning-customers-confidence-back/" target="_blank">demonstrating</a> Bitfinex’s commitment to user recovery. 
In February 2022, U.S. authorities <a href="https://crypto.news/new-york-resident-confesses-to-hacking-bitfinex-in-2016/" target="_blank">seized</a> 94,643 BTC associated with the hack, valued at approximately $3.6 billion at that time. These funds are now worth around $5.8 billion and are poised for potential return to Bitfinex. 
Ilya Lichtenstein confessed to laundering $4.5 billion in stolen Bitcoin from the 2016 Bitfinex hack. Despite skepticism about the ability to execute such a crime, blockchain records linked Bitfinex and Lichtenstein’s wallet. 
 You might also like: <a rel="" href="https://crypto.news/vaneck-launches-30m-fund-for-crypto-and-ai-startups/"> VanEck launches $30m fund for crypto and AI startups </a>

Bitfinex could be ‘sole victim’ of 2016 hack, US government says

Table of Contents

crypto.news

Other articles published on Oct 9, 2024

Top SUI Projects You Should Watch Out For In 2024

Why I Was Wrong About Memecoins (And You Might Be, Too)!

BREAKING: HBO’s Alleged Satoshi Nakamoto Revealed

Canary Capital Second to File for XRP ETF

Leading Solana Memecoin Now Available in North America on Major US Exchange

Taiwan to Launch Crypto Custody Service Trials with Local Banks in 2025

Join our free newsletter for daily crypto updates!