Bitfinex Receives Payout From 2016 Hack; Customers to be Recompensated
Share this article
Bitfinex, a leading digital currency exchange platform, has reported that it has reclaimed a portion of the funds lost in the 2016 security incident. The U.S. Department of Homeland Security (DHS) returned $312,219.71 in cash and 6.917 Bitcoin Cash (BCH) to the exchange as part of this ongoing recovery process.
The seizure was accomplished through the cooperation of U.S. Customs and Border Protection, a DHS agency, committting to helping resolve the Bitfinex hack and catch the culprits.
👀 https://t.co/nxS1rfSs3C
— Paolo Ardoino 🍐 (@paoloardoino) July 6, 2023
Bitfinex’s chief technology officer, Paolo Ardoino, voiced appreciation and contentment for the progress, stating in the press release, “This specific seizure demonstrates the commitment of law enforcement officials to diligently track all the proceeds of the crime committed against Bitfinex almost seven years ago. We look forward to recovering as much of the stolen bitcoin as we possibly can and redistributing that to holders of the tokens that were issued in response to the hack in 2016.”
In response to the security breach five years ago, Bitfinex introduced Recovery Right Tokens (RRTs) to recompensate affected users. The newly reclaimed funds will be directed toward redeeming these tokens.
However, the funds currently recovered do not suffice to redeem all 30 million RRTs that are in circulation. Bitfinex’s contract stipulates that all RRT holders are to be redeemed at $1. Therefore, up to 80% of any surplus of the recovered assets will be distributed to the holders of UNUS SED LEO tokens.
Bitfinex will start the process of redeeming RRT tokens, with the distribution determined proportionately based on each holder’s RRTs as of 12:00.01 am UTC, July 6, 2023.
Bitfinex was hacked in 2016, stealing about $72 million in Bitcoin. Throughout the years, government agencies and blockchain sleuths would track the coins, such as 28 BTC in 2019, 2470 BTC in October 2020, and even following 120,000 BTC around the blockchain as the on-chain records tracked the Bitfinex Bitcoin from the beginning in 2016.
In 2022, the Department of Justice made a breakthrough after arresting and charging Ilya Lichtenstein and Heather Morgan for their possible involvement in the 2016 Bitfinex hack. However, they have yet to be officially charged with the theft directly related to the Bitfinex breach, with some speculating that they are not connected.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
