US authorities have demanded the return of the cryptocurrency stolen in a major hacker attack on the Bitfinex exchange in 2016. This event left a mark on the crypto market, causing lasting consequences for all involved.
The Hack and Its Consequences
In 2016, 119,754 bitcoins were stolen from the Bitfinex exchange, worth about 72 million dollars at that time. With the current rates, the amount has risen to more than 11.8 billion dollars. After the attack, the exchange halted all withdrawals and started a recovery process. Users saw a 36% deduction in their balances, which caused dissatisfaction in the crypto community.
Justice and Investigation
In 2022, Ilya Lichtenstein and Heather Morgan were arrested for their involvement in the theft. The motion filed on January 14 demands the digital assets be returned to Bitfinex 'in-kind', which refers to the exact amount and type of cryptocurrency stolen.
Bitfinex Actions Post-Hack
Following the recovery, Bitfinex issued BFX tokens, which could be redeemed for cash or shares in iFinex, the parent company of Bitfinex. After eight months, all BFX tokens were redeemed. In October 2024, US authorities acknowledged Bitfinex's efforts to compensate users.
The cryptocurrency theft story exposed many security issues in the crypto exchange arena. Actions taken by Bitfinex and authorities aim to restore justice and ensure future security.
