By Nermeen Nabil Khear 
The U.S. Department of Justice (DOJ) filed a court document on Tuesday approving the return of 94,643 Bitcoin, recovered from a 2016 hack targeting the Bitfinex crypto exchange.
The breach resulted in the theft of nearly 120,000 Bitcoins, valued at approximately $12 billion today.
Of this, $9.3 billion worth, equivalent to 94,643 Bitcoin, has been recovered and approved for return to Bitfinex.
Court Ruling: No Victims Identified in Bitfinex Hack
The DOJ stated in the court filing that no identifiable victims exist in the Bitfinex hack due to the exchange’s repayment measures and loss generalization policies.
The filing read: “For the foregoing reasons, there is no ‘victim’ for the specific offenses of conviction in this proceeding.”
The 2016 hack exploited a vulnerability in Bitfinex’s multi-signature wallet system, allowing hackers to steal vast amounts of cryptocurrency.
According to the DOJ, the stolen Bitcoin was laundered using advanced methods, including crypto-mixing services.
The hack led to the conviction of Ilya Lichtenstein and his wife, Heather “Razzlekhan” Morgan.
Lichtenstein was sentenced to 60 months in prison for money laundering, while Morgan received an 18-month sentence for assisting in laundering the stolen funds.
Their cooperation enabled the recovery of 80% of the stolen Bitcoin, marking one of the largest asset seizures in DOJ history.
Despite her legal troubles, Morgan, a rapper and social media personality, recently released a music video titled “Razzlekhan vs. The United States,” dedicated to “misfits.” She is scheduled to report to prison this month.
January 28 Deadline for Bitfinex Users to File Restitution Claims
Following the hack, Bitfinex implemented a repayment program to address customer losses. The exchange reduced user account balances by 36% and issued BFX tokens as compensation.
These tokens were redeemable for cash or convertible into equity in Bitfinex’s parent company, Ifinex. The company also issued Recovery Right Tokens (RRT) to address potential future recoveries.
Bitfinex stated that its repayment program fully compensated users, though some have argued that Bitcoin’s price increase since 2016 has left them undercompensated.
While Bitfinex will receive 94,643 Bitcoin, valued at $9.3 billion, not all stolen funds could be recovered due to the complexity of laundering transactions.
The plea agreements facilitated voluntary restitution to Bitfinex, focusing on assets linked to the hack. Separate forfeiture processes address other laundered funds not directly tied to the stolen Bitcoin.
As part of the restitution process, affected users have until January 28, 2025, to file claims or objections to the terms.
The DOJ has established a mechanism for individuals identifying themselves as affected parties to submit their claims.
The post U.S. Court Orders Return of 94,643 Stolen Bitcoins to Bitfinex as Part of Plea Deal appeared first on Cryptonews.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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