120,000 Bitcoins from Bitfinex Exchange Hack Will Be Returned to Owners

Key Points:

  • A U.S. court has mandated the return of nearly $12 billion in Bitcoin seized from the 2016 Bitfinex exchange hack through in-kind restitution.
  • The 2016 hack saw 119,755 Bitcoin stolen, initially worth $71 million.
  • Law enforcement has recovered $10 billion of the stolen assets, with ongoing proceedings for the remaining funds.
A US court has ruled that approximately 120,000 Bitcoins, which are now worth about $12 billion taken from the 2016 Bitfinex exchange hack, will be restituted in kind to the firm.
120,000 Bitcoins from Bitfinex Exchange Hack Will Be Returned to Owners

Read more: Bitfinex Securities Launched First Tokenized U.S. Treasury Bonds 

Court Orders Refund of $12 Billion Bitcoin from Bitfinex Exchange Hack

The ruling is part of a recent filing and was reported by DB News in a year-long investigation over one of the biggest digital currency thefts ever.

On August 2, 2016, Bitfinex, one of the most popular digital asset exchanges in the world, had about 119,755 Bitcoins stolen from them, then valued at about $71 million. In February 2022, it was reported by the US Justice Department that much of the pilfered cryptocurrency was recovered with a now-appreciated value of approximately $3.6 billion.

“Assets seized from the Bitfinex Hack Wallet and that, pursuant to the plea agreements, those assets should be returned to Bitfinex as in-kind restitution,” the filing said.

In July 2023, Bitfinex returned $312,219.71 in cash and 6,917 Bitcoin Cash (BCH) as part of the ongoing recovery. The funds were used to redeem Recovery Right Tokens that were issued to customers who were affected by the breach.

Hackers Sentenced as Recovery Efforts Continue

The investigation led to the arrest of Ilya Lichtenstein and his wife, Heather Morgan, in February 2022. They pleaded guilty to money laundering charges and have been sentenced, pending November 2024. Lichtenstein, who executed the Bitfinex exchange hack, was given a five-year prison sentence.

Law enforcement has recovered roughly $10 billion in stolen assets related to the hack through various seizures. However, in October 2024, about $20 million in cryptocurrency was moved from U.S. government-controlled wallets, raising some concerns about asset management.

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