The U.S. government announced that over 94,000 bitcoins, stolen in the 2016 Bitfinex hack, are to be returned to the exchange, as confirmed by a recent court filing.
Details of the Court Case
A filing submitted to the U.S. District Court for the District of Columbia confirmed that Bitfinex was the sole victim of the theft. This follows plea agreements with Ilya Lichtenstein and Heather Morgan, who admitted to conspiring to launder 119,754 bitcoins.
History of Bitcoin Theft and Laundering
The 2016 hack involved the theft of 120,000 bitcoins, now valued at over $12 billion. Lichtenstein and his wife, Heather Morgan, also known as the rap artist “Razzlekhan,” laundered the stolen funds using crypto mixers, complex transactions, darknet markets, and other techniques. The pair were arrested in 2022, and authorities seized bitcoins valued at nearly $4 billion — marking the Department of Justice's largest asset seizure.
Bitfinex's Reaction and Plans for Returned Funds
Bitfinex had previously announced plans to use 80% of any recovered funds to buy back and burn UNUS SED LEO tokens over an 18-month period to reduce the number of tokens in circulation. These actions followed the token's issuance to mitigate customer losses from the hack.
The U.S. government emphasized the importance of ensuring restitution and confirmed the absence of other claimants for compensation.
