US Government Moves Bitcoin Tied to $9 Billion Bitfinex Hack

1 month ago 18

In brief

Blockchain information shows the U.S. authorities transferred much than $600,000 worthy of Bitcoin connected to the 2016 Bitfinex hack.
The funds were transferred from a authorities relationship to Coinbase Prime, perchance up of a merchantability of the funds.
The BTC is connected to the much than $9 billion, oregon 94,000 BTC which was seized from the Bitfinex hacker.

Bitcoin holdings linked to the $9 cardinal hack of crypto speech Bitfinex successful 2016 was connected the determination Thursday, arsenic addresses connected to the U.S. authorities transferred astir 8.2 BTC to Coinbase Prime, according to information from Arkham Intelligence.

The coins, present valued astir $628,000, last moved 2 years ago erstwhile a antithetic U.S. authorities code transferred them to the wallet that was labeled by Arkham arsenic “Bitfinex hacker seized funds.”

A typical for the Department of Justice did not instantly respond to Decrypt’s request for remark seeking confirmation astir the coins’ transportation to Bitfinex oregon wherefore the funds whitethorn person been moved.

When crypto assets are moved to an exchange, it is often viewed arsenic the precursor to a sale. However, the government’s intentions for the precocious transferred BTC stay chartless astatine this time.

The transferred Bitcoin represents conscionable a tiny fraction of the much than 94,000 Bitcoin seized by the U.S. government arsenic portion of its probe and apprehension of Ilya Lichtenstein and spouse Heather “Razzlekhan” Morgan for their roles related to the hack and consequent laundering of stolen funds. Those seized funds are worthy much than $7.2 cardinal now.

Lichtenstein, the theft’s orchestrator, exploited a information vulnerability connected the crypto speech that led to the heist of 119,754 BTC—or $9.18 cardinal worthy astatine today’s prices. Arrested successful 2022 connected conspiracy to perpetrate wealth laundering, helium aboriginal pleaded blameworthy to the charges successful 2023. He was sentenced to 5 years successful situation for wealth laundering successful 2024.

Morgan, Lichtenstein's woman and besides a rapper, was deed with wealth laundering charges and later sentenced to 18 months successful national prison.

Prior to sentencing, the brace reached a plea woody with prosecutors successful 2023, agreeing to forfeit each the remaining proceeds from the astir 120,000 BTC that was taken from the exchange.

Lichtenstein and Morgan were some precocious released from prison, crediting President Trump for their aboriginal release contempt determination being nary authoritative reported enactment from the president to commute the sentences.

“I privation to springiness a shoutout to Papa Trump for making my 18-month condemnation shorter,” Morgan said astatine the time. “So razzle-fucking-dazzle.”