US Homeland Security Aids Bitifinex to Retrieve $314,000 From 2016 $3.6 Billion Hack
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Crypto exchange Bitfinex recovered $314,000 worth of cash and $BCH from a crypto hack in 2016.
The trading platform received the assets from the United States Department of Homeland Security, with more efforts geared towards uncovering more funds.
Recovered Assets and Funds to be Distributed to Frustrated Victims
On July 6th, the Bitfinex exchange announced it had received $312,219.71 in cash and 6.917 in Bitcoin Cash ($BCH) from the United State Department of Homeland Security.
At press time, $BCH trades at $278 per token, which makes a total of $1,922 recovered in crypto. The recovery was executed in collaboration with United States Customs and Border Protection.
As detailed in the announcement, Bitfinex Chief Technology Officer Paolo Ardoino stated that the trading company is excited to reach another milestone in uncovering stolen assets in 2016.
Ardoino cited that more efforts will be intensified to recover more stolen funds and assets and redistribute them to customers who were victims of the colossal hack.
Depth Insights on Bitfinex’s Colossal Crypto Attack in 2016
On August 2016, Bitfinex announced the shutdown of all trading activities, including deposits and withdrawals, due to a late discovery of a security breach.
The platform stated that hackers had stolen 119,756 $BTC worth about $72 million at the time. The news permeated global crypto communities, creating uncertainties on the security and longevity of crypto assets.
The negativity of the news affected the crypto market, which plunged the value of $BTC by 20%.
The Hong Kong-based exchange then shared the losses across all its clients and assets, which amounted to a generalized loss of about 36%.
Additionally, affected customers were given a $BFX token, the Bitfinex native crypto, for every $1 lost.
The $BFX tokens could be redeemed anytime in the exchange or traded for shares in iFinex, the trading exchange parent company, while solutions are formed to retrieve lost assets.
Within eight months of the theft, all distributed $BFX tokens were redeemed for a dollar or traded for shares in iFinex.
Customers who traded for shares received Recovery Right Token (RRT), an entitlement to reimbursement of funds and assets anytime recovery occurs.
Breakdown of Recoveries Made So Far
The crypto hack on Bitfinex was adverse and the biggest ever recorded. However, the exchange avoided bankruptcy and contacted international and local authorities to investigate the cyber hack.
In 2018, Reuters reported that the U.S. government had recovered and returned 27.66 $BTC worth $110,00 to Bitfinex.
Although this was a fraction of the stolen asset, the development brought a glimmer of hope for the exchange and the affected victims.
Bitfinex converted the $BTC to USD and distributed it to the holders of Recovery Right Tokens (RRTs) as promised.
On February 8, 2022, significant progress was made following the U.S. Department of Justice’s announcement about the charge of Ilya Lichtenstein and Heather Morgan for conspiracy to launder.
The two accused were discovered to be the major perpetrators of the $72 million $BTC hack, which is now worth over $3.6 billion.
The accounts, wallets, and properties owned by both launders with stolen funds were seized.
Bitfinex published a public release on the same day to appreciate the efforts of the U.S. government and reassure victims of their efforts to work with law enforcement to uncover more hack mysteries.
The new recovery of $314,000 by the United State Department of Homeland Security can be taken with good faith. This could trigger a spate of more cleared funds and assets for victims.
However, Bitfinex will share the $314,000 proportionally with RRTs owners until all funds are fully recovered.
