A federal court in the US has yet to decide on a motion from the government to return crypto forfeited in a 2016 Bitfinex hack case.
The Bitfinex Hack History
In August 2016, hackers stole roughly 119,754 BTC from the Bitfinex exchange, marking one of the largest crypto thefts at that time. US authorities arrested Ilya Lichtenstein and his wife Heather Morgan for money laundering connected to the hack in 2022, seizing the crypto.
Legal Proceedings and Charges
In January 2023, Judge Colleen Kollar-Kotelly asked US prosecutors to clarify issues related to returning funds to Bitfinex as part of proceedings against two accused money launderers. Lichtenstein and Morgan pleaded guilty, with sentences of five years and 18 months, respectively.
Potential Compensation
Judge Kollar-Kotelly noted that ordering Lichtenstein and Morgan to return funds could reduce the forfeiture order amount, considered 'improper' by other courts. In October 2024, the US government invited hack victims to submit impact statements. While many were affected, Bitfinex may be the only party eligible for reimbursement.
The US court's decision on compensating Bitfinex after the 2016 hack awaits further government clarification, potentially impacting how confiscated funds are handled in future cases.
