The United States Department of Homeland Security has made significant progress in recovering stolen assets from the 2016 Bitfinex hack. Through a cooperative effort with U.S. Customs and Border Protection, $312,219.71 in cash and 6.917 Bitcoin Cash has been returned to Bitfinex according to a report.
In its continuous efforts to reclaim stolen assets, Bitfinex has been working closely with law enforcement and investigation agencies. Through this collaboration, progress has been made in prosecuting individuals involved in the security breach and seizing associated funds.
Returned Assets and Distribution
On July 6, the United States Department of Homeland Security returned $312,219.71 in cash and 6.917 Bitcoin Cash to Bitfinex. This recovery is a significant step towards compensating victims of the 2016 Bitfinex hack.
Furthermore, Bitfinex will distribute the returned assets to victims of the 2016 Bitfinex hack on a pro-rated basis. This ensures a fair allocation among those affected by the security breach. Additionally, Bitfinex aims to provide restitution to its users who suffered losses during the incident.
Recovery Rights Tokens and Unus Sed Leo (LEO) Token
Following the security breach, Bitfinex issued Recovery Rights Tokens (RRTs) with a par value of $1 each. Currently, there are 30 million RRTs in circulation. Further, users will redeem these tokens using the recovered assets, facilitating the compensation process for affected users.
Also, after the redemption of RRTs, any remaining assets will be allocated to token holders of Unus Sed Leo (LEO). LEO is Bitfinex’s native token, and this distribution serves as an additional benefit to LEO holders.
Background on the Bitfinex Hack and Recent Arrests
Meanwhile, in 2016, Bitfinex experienced a security breach resulting in the loss of 119,576 customers’ Bitcoin. At the time, the stolen funds were valued at approximately $70 million, which has significantly increased in value to $3.7 billion today.
However, on February 8, 2022, the U.S. Department of Justice arrested Ilya Lichtenstein and his wife, Heather Morgan, for their alleged involvement in conspiring to launder crypto connected to the Bitfinex hack. Subsequently, special agents seized over 94,000 stolen BTC from the suspects after obtaining a search warrant that allowed access to files containing private keys to their wallet.
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