Exciting news for crypto investors! Around 80% of the BTC stolen during the 2016 Bitfinex hack could soon be returned to the crypto exchange. Delve into this intricate case that has taken years to investigate.
Written by Ariela - Last updated on 01/16/2025 at 16:02 by Ariela
Almost 9 years after the infamous 2016 Bitfinex hack, a significant development has occurred in the United States legal system. The restitution of 95,000 bitcoins out of the 119,754 stolen has been approved. At the current BTC rate, this amounts to nearly $2.7 billion.
Recall that this massive theft resulted in the loss of about $72 million for the crypto platform. To this day, many consider it one of the largest hacks in the history of cryptocurrencies. The U.S. government has reclaimed these funds from the original wallet used by the hacker, Ilya Lichtenstein.
In a document filed on Tuesday, prosecutors stated that these bitcoins will be returned in kind to Bitfinex. But that’s not all! Bitcoin Cash, Bitcoin Gold, and Bitcoin Satoshi Vision from forks that occurred after the hack will also be transferred to the crypto exchange.
According to the prosecutors, this restitution marks a crucial step in closing the case. Crypto investors now eagerly await the finalization of this restitution following the court’s approval.
While the return of Bitfinex’s 95,000 BTC is imminent, the fate of the remaining 25,000 bitcoins is more complex. Prosecutors indicate that these funds cannot be returned immediately. The reason? They have been mixed through various sophisticated money laundering processes.
To conceal their tracks, Ilya Lichtenstein and Heather Morgan utilized various techniques, including:
As of now, both have been convicted of laundering a portion of the funds.
Being no longer identifiable as the “specific assets” stolen during the hack, the remaining BTC requires special legal handling. Prosecutors specifically mention an ancillary confiscation procedure, which could delay the restitution for several months, if not years.
This process makes the recovery of the 25,000 bitcoins uncertain for Bitfinex, which must now await the conclusion of this process. Despite most of the funds being under the authorities’ control, this step nonetheless represents a major success for the crypto platform.
The Bitfinex hack led to the arrest of Ilya Lichtenstein and his wife Heather Morgan. Both pleaded guilty in 2023 for their roles in laundering the stolen funds.
Both defendants agreed to forfeit the stolen cryptocurrencies, facilitating the ongoing restitution.
Overall, this crypto case highlights the vulnerabilities of crypto exchange platforms to cyberattacks. The methods used by Lichtenstein demonstrate the increasing sophistication of hackers in this sector. It also showcases the significant challenges faced by victims of cryptocurrency theft in recovering their assets.
With that said, the conviction of the two individuals sends a clear message: justice catches up with criminals, even in the often opaque world of crypto-assets.
⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and shall not be held liable, directly or indirectly, for any damage or loss caused as a result of using any goods or services highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
Ariela is one of the main editors of the news shared daily on InvestX. With 8 years of experience in writing, she writes articles on the topics that mark the crypto market each day.
Risk Warning: Trading financial instruments and/or crypto-currencies involves high risks, including the risk of losing all or part of your investment, and may not be suitable for all investors. Crypto-currency prices are extremely volatile and can be affected by external factors such as financial, regulatory or political events. Trading on margin increases financial risk.
Before deciding to trade in financial instruments or crypto-currencies, you should be fully informed of the risks and fees associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and tolerance for risk, and seek professional advice if necessary.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
