Bitfinex 2016 Hack Saga Worth $5.8 Billion Finally Gets Resolution

As a seasoned researcher with a knack for unraveling the complexities of financial crimes, I find this latest development surrounding Bitfinex and the 2016 hack intriguing. The U.S. government’s announcement that only Bitfinex may be eligible for restitution from the recovered stolen Bitcoin is a fascinating twist in the tale.


The District Court in Washington D.C. has indicated that Bitfinex could be the sole candidate entitled to recover the 119,754 Bitcoin stolen during the well-known 2016 hack. This decision comes after Ilya Lichtenstein and Heather Rhiannon Morgan pleaded guilty in 2022 for their involvement in money laundering conspiracy and defrauding the U.S. government.

As a researcher, I’d like to clarify an intriguing incident: Lichtenstein and Morgan are believed to have utilized sophisticated hacking tools to penetrate Bitfinex. Subsequently, they executed approximately 2,000 transactions to move the stolen Bitcoin into their personal wallets. After that, they allegedly laundered these funds in various ways, such as converting some of it into gold coins and burying them, presumably for later use.

After their arrest in February 2022, the U.S. authorities have managed to retrieve around 95,000 Bitcoin that are currently worth approximately $5.89 billion. Additionally, they’ve seized an extra $475 million in associated assets. As of now, these Bitcoin are said to be stored at the “bc1qazcm” wallet, which is owned by the FBI, as reported by Arkham Intelligence.

Bitfinex 2016 Hack Saga Worth $5.8 Billion Finally Gets Resolution

Although the scale of the theft suggests there could be more affected parties, the U.S. government declared today that it has not identified any individuals, aside from Bitfinex, who meet the criteria as victims under the Crime Victims’ Rights Act (CVRA) or eligible for restitution under the Mandatory Victims Restitution Act (MVRA).

It’s plausible because the U.S. Department of Justice stated that Bitfinex had earlier reimbursed affected customers using “BFX” tokens, and all these tokens were redeemed by April 2017. This reimbursement implies that no other victims might be eligible for compensation, making Bitfinex the only one who can claim the recovered Bitcoin.

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2024-10-09 17:56