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Bitfinex, a leading digital currency exchange, has reported that it has recovered part of the funds lost during the 2016 security incident. The US Department of Homeland Security (DHS) returned $312,219.71 in cash and 6,917 Bitcoin Cash (BCH) to the exchange as part of this ongoing recovery process.
The seizure was achieved through the cooperation of US Customs and Border Protection, an agency of DHS, which has pledged to help solve the Bitfinex hack and catch the culprits.
— Paolo Ardoino 🍐 (@paoloardoino) July 6, 2023
Bitfinex Chief Technology Officer Paolo Ardoino expressed his appreciation and satisfaction for the progress, stating in the press release, “This specific seizure demonstrates the commitment of law enforcement officials to diligently follow up on all the proceeds of crime committed against Bitfinex almost seven years ago. We look forward to recovering as many stolen bitcoins as possible and redistributing them to holders of the tokens that were issued in response to the hack in 2016.”
In response to the security breach five years ago, Bitfinex introduced Recovery Right Tokens (RRT) to reward affected users. The newly recovered funds will be directed to the redemption of these tokens.
However, the funds currently recovered are not sufficient to redeem all 30 million RRTs in circulation. Bitfinex’s contract stipulates that all RRT holders must be reimbursed $1. Therefore, up to 80% of any excess recovered assets will be distributed to UNUS SED LEO token holders.
Bitfinex will initiate the process of buying back the RRT tokens, with the distribution being determined proportionally based on each holder’s RRTs starting at 00:00:01 UTC, July 6, 2023.
Bitfinex was pirate in 2016, stealing around $72 million in Bitcoin. Over the years, government agencies and blockchain sleuths have been tracking coins, such as 28 BTC in 2019, 2,470 BTC in October 2020, and even tracking 120,000 BTC around the blockchain as on-chain records track the Bitcoin Bitfinex since inception in 2016. .
In 2022, the Department of Justice made a breakthrough after arresting and indicting Ilya Lichtenstein and Heather Morgan for their possible involvement in the 2016 Bitfinex hack. accused with the theft directly linked to the Bitfinex breach, with some speculating they are unconnected.