Bitcoin News

Bitcoins from the Bitfinex hack traced and returned

Bitcoins which were stolen during the Bitfinex hack in 2016 have been traced and returned to the exchange by the United States law enforcement agencies.

According to Bitfinex, 27.7 Bitcoins were returned by the law enforcement agencies. The exchange added that:

Since the documented [Bitfinex hack] in 2016, Bitfinex has collaborated with international law enforcement agencies to provide intelligence and assist with investigations. Bitfinex was alerted in November 2018 that the U.S government had obtained Bitcoins believed to be proceeds from the 2016 hack.

The Bitfinex hack happened towards the end of the third quarter of 2016 with the hackers successfully making away with almost 120 thousand Bitcoins. The Bitfinex hack came roughly 2.5 years after the loss of Bitcoins from Mt. Gox in 2014.

After the hack, the exchange generalized the loss across all accounts and gave customers BFX tokens at the ratio of 1:1 to the U.S dollar. BFX tokens were later converted into shares of iFinex by way of RRT tokens.

With the returned Bitcoins forming less than 0.05 percent of all Bitcoins lost during the Bitfinex hack, the exchange will convert the returned Bitcoins into U.S dollars and spread them across all Recovery Right Token (RRT) holders.

The exchange noted:

As all BFX tokens have been redeemed and destroyed, the full amount of recovered Bitcoins today [Feb 25] is being distributed pro rata to the RRT holders.

Bitfinex’s CFO, Giancarlo Devasini, said that the return of the Bitcoins from the Bitfinex hack is as a result of “clear and robust” response to the hack and the efforts from the U.S law enforcement agencies. Devasini also called on anyone with crucial information about the Bitfinex hack to share it on any platform “they feel most secure with” to help bring the matter to rest with all parties involved.

Do you think the return of the Bitcoins from the Bitfinex hack is a sign that Bitcoin hackers may soon not hide from law enforcers?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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