On Thursday, crypto exchange Bitfinex disclosed that it had recouped about $310,000 in cash stolen during an attack in 2016. In addition, the company also recovered 7 Bitcoin Cash, worth $1,940 as of this writing.
In a statement, Bitfinex said the US Department of Homeland Security had already sent the assets to the company. The British Virgin Island-based exchange also revealed its plans to continue working with various law enforcement agencies to ensure all the stolen funds from the exploit that happened seven years are recovered.
In 2016, Bitfinex’s users collectively lost over 120,000 BTC worth $71 million to hackers. For three years since the hack, the exchange had been trying to reach a deal with the attackers to return the funds, but its efforts proved fruitless. By 2019, Bitfinex had only managed to recoup 26 BTC.
However, the United States Department of Justice revealed in 2022 that it had seized $3.4 billion in stolen Bitcoin from the Bitfinex exchange. The authority also reported arresting two individuals, namely Ilya Lichtenstein and Heather Morgan, for their involvement in the 2016 exploit.
Bitfinex CTO Reveals Exchange’s Next Step After Recovering Stolen Funds
Meanwhile, Bitfinex’s Chief Technology Officer Paolo Ardoino says the firm is pleased to achieve another milestone in its journey to recover stolen assets. He hopes Bitfinex, together with the authorities, can recoup most of the Bitcoin so that the exchange can start compensating affected users.
It is important to mention that the recovered BTC will be distributed to holders of the Bitfinex Recovery Right Tokens (BRRT). These digital coins were issued to the exchange’s users who were victims of the 2016 hack.
Where Did the Hackers Move the Stolen BTC?
According to blockchain forensic firm CipherBlade, the two suspects of the exploit managed to transfer the stolen funds to various crypto exchanges that have less strict Know-Your-customer protocols aiming to cash them out, but their plan did not work as the United States law enforcement agency was able to track and seize the stolen BTC. This remains to be the biggest crypto Seizure.
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