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Bitfinex Stolen Bitcoins Will Be Refunded From 2016 Hack

Key Points:

U.S. journalists have filed a motion to notify the public about the 2016 Bitfinex hack, which the exchange is the only confirmed victim of.
Bitfinex stolen Bitcoin has been refunded from the U.S. Department of Homeland Security as part of recovery efforts and plans to use these to redeem Recovery Right Tokens.

U.S. prosecutors filed a motion pertaining to the 2016 Bitfinex hack, requesting public notification of crimes to which a defendant has pleaded guilty.

Bitfinex Stolen Bitcoin Public Notification Sought by Prosecutors

Prosecutor Matthew M. Graves said that although Bitfinex represents the singular victim for the purposes of the CVRA, the government is seeking to notify potential victims of their rights.

Absent any other apparent victims who could be identified as satisfying both the CVRA and/or MVRA, the government would, in an abundance of caution, propose contacting all the former account holders of the VCE.

Defendants Ilya Lichtenstein and Heather Rhiannon Morgan have not objected to the government’s motion. Their defence took a position that any victims under either the CVRA or MVRA are Bitfinex.

By April 2017, Bitfinex stolen Bitcoins had been redeemed and gave some customers shares in its parent company, iFinex. The only party that lost financially from the 2016 cyber attack was the company itself, argues the company.

Bitfinex Advances Recovery Efforts Following Major Security Breach

Recent developments indeed show that the restitution process will surely revolve around Bitfinex due to the fact that it has paid its users with other means.

Bitfinex stolen Bitcoin presents a case of the biggest security incidence for digital exchanges in cryptocurrency. The situation had a wide impact on the market and raised questions regarding the security approach by digital asset exchanges. In the meantime, all compensations by Bitfinex to the users and recovery of lost assets have positioned it to reclaim a major portion of the funds stolen.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.