A US government filing indicates that Bitfinex may be the only entity eligible for restitution following the massive 2016 Bitcoin theft.
US government filing confirmed Bitfinex may be the only victim eligible for compensation over the infamous 2016 hack that resulted in the theft of approximately 120,000 Bitcoins (BTC), now valued at $7.4 billion .
According to court documents, the U.S. Attorney for the District of Columbia said: “To the Government’s knowledge, no person is being considered a victim under the Crime Victims’ Rights Act or for restitution under of the Mandatory Victim Restitution Act, perhaps beyond Bitfinex. .”
This statement places Bitfinex as the primary entity affected by the cyberattack, which left individual account holders without recourse to reclaim seized assets.
“According to information provided by iFinex’s attorney, iFinex believes that this is the only
victim with sustained financial losses due to hacking,” the document reads.
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 token (LEO) surged over 50% to over $8.
The 2016 Bitfinex hack
The hackers – Ilya Lichtenstein and Heather Morgan – allegedly infiltrated Bitfinex systems and executed more than 2,000 unauthorized transactions.
Following the hack, the exchange rewarded users with BFX tokens, allowing them to redeem them or convert them into shares of its parent company, iFinex. By April 2017, all BFX tokens had been traded, demonstrating Bitfinex’s commitment to user recovery.
In February 2022, US authorities seized 94,643 BTC associated with the hack, valued at the time at approximately $3.6 billion. These funds are now worth approximately $5.8 billion and are about to potentially be returned to Bitfinex.
Ilya Lichtenstein confessed to laundering $4.5 billion in Bitcoin stolen during the 2016 Bitfinex hack. Despite skepticism about the ability to execute such a crime, blockchain records link Bitfinex and Lichtenstein’s wallet.
