Bitfinex to recoup stolen Bitcoin after US restitution mandate
The US government ordered the return of 94,000 Bitcoin (BTC) seized from the 2016 Bitfinex hack to the exchange, citing no identified victims for the specific offenses. The ruling follows a government filing that recognized Bitfinex as the sole victim. The restitution is linked to the guilty pleas of Ilya Lichtenstein and Heather Morgan, who conspired to launder 119,754 BTC, valued at approximately $71 million at the time of the hack. Lichtenstein received a five-year prison sentence, while Morgan was sentenced to 18 months. In the 2016 breach, nearly 120,000 BTC was stolen, leading to a 36% reduction in user balances and the issuance of BFX tokens. By April 2017, all BFX tokens were redeemed. In July 2023, Bitfinex received cash and Bitcoin Cash (BCH) from the Department of Homeland Security to redeem Recovery Right Tokens (RRT) for users and plans to allocate up to 80% of remaining assets to UNUS SED LEO (LEO) token holders over 18 months.
