Hackers Return $19.2 Million to U.S. Government Wallet For Crypto Theft

• Hackers returned $19.2 million of stolen crypto to a U.S. government-linked wallet after laundering funds through exchanges.
• The FBI warns of rising North Korean hacker threats targeting crypto firms using advanced social engineering.

The crypto industry was rocked on October 24, 2024, when hackers effectively pilfers around $20 million in crypto assets from wallets connected to the U.S. government. Tracked to moves from a previously dormant wallet linked with the 2016 Bitfinex breach, the pilfers included Ethereum (ETH), USDT, USDC, and aUSDC.

From the Aave DeFi platform, the hackers first sucked $1.25 million in USDT and $5.5 million in USDC. Additional payments went to a new wallet totaling $13.7 million in USDC and $446,000 in ETH. To evade discovery, the hackers then passed the money through other exchanges and smaller accounts.

Hackers Unexpected Decision Raises Questions 

Unexpectedly, though, blockchain detective ZachXBT found that the hacker had returned $19.2 million back to the original U.S. government-linked wallet. This unexpected action begged several issues about the reasons underlying the comeback.

Hackers have returned $19.3M to the #USgovernment.https://t.co/yiR3xzKHSY pic.twitter.com/Q5ShaldJ4W

— Lookonchain (@lookonchain) October 25, 2024

Though certain assets remain unidentified, since some of the stolen cryptocurrency were earlier transferred to exchanges including Switchain, HitBTC, and N Exchange, the retrieved money contained 2,408 ETH and 13.19 million aUSDC.

The reasons for the hacker’s choice to reimburse a sizable amount of the money remain unknown, which fuels interest in the current probe.

This event also coincides with growing worries about advanced cyber techniques, including social engineering attempts connected to North Korean entities.

According to CNF, after North Korean hackers targeted Bitcoin ETF issuers and several crypto companies, the FBI issued warnings. These incidents highlight the rising threat environment in the cryptocurrency industry, in which hacks even of government-linked wallets are not exempt.