In a recent court filing, the United States has decided that 94,643 units of the stolen Bitcoin (BTC) from the 2016 Bitfinex hack be returned to the exchange.
This return will represent almost 80% of the 119,754 BTC stolen nine years ago. The US government recovered this portion of the cryptocurrency during its many years-long investigation.
US Govt Plans Biggest Bitcoin Restitution
While the Department of Justice wants to return the funds, it will require the court’s approval.
Apart from the 94,643 BTC, Bitcoin Cash, Bitcoin Satoshi Vision, and Bitcoin Gold, generated via several hard forks after the hack, will also be sent to Bitfinex.
Based on the Tuesday filing from the government, “For the foregoing reasons, there is no ‘victim’ for the specific offenses of conviction in this proceeding.”
In the government’s opinion, the Court holds the authority to order voluntary restitution under the defendants’ plea agreements.
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Such cases warrant that the voluntary restitution should include all the assets seized from the nine-year-old hack.
So, those assets should be returned to Bitfinex as “in-kind restitution,” the prosecutors wrote.
This aligns with an earlier filing that named Bitfinex the “sole victim” in the unfortunate hack.
Ilya Lichtenstein and Heather Morgan Bitfinex Hack
Ilya Lichtenstein, the convicted hacker, recently received a 5-year sentence after pleading guilty to conspiracy.
He connived with his wife, Heather “Razzlekhan” Morgan, to launder the fund two years ago. According to US prosecutors, they used a “variety of complex and technologically sophisticated means.”
The couple went as far as laundering through extensive peel chain transactions, non-compliant virtual currency exchanges, and darknet markets.
Crypto mixers and tumblers were also used to obfuscate the source of the digital assets.
In the end, Morgan received only an 18-month sentence for her part in the crime. They both agreed to forfeit the stolen funds to soften their plea, setting the basis for the restitution to Bitfinex.
Just around the time of their sentences, one crypto hacker reportedly breached U.S. government wallets. He siphoned up to $20 million in crypto assets, including Ethereum (ETH), USDC and aUSDC.
This was from the 2016 Bitfinex hack, in which the hacker almost immediately returned most of the stolen funds.
Major Precedents in the Industry
Such a hack that hit Bitfinex is not an uncommon incident. Last year, the cryptocurrency sector recorded several of these attacks, leaving many investors with huge losses.
In 2024, DMM Bitcoin experienced a hack which turned out to be one of the biggest exploits of the year. The Japanese crypto trading platform lost over 4,502.9 BTC worth $300 Million.
Unfortunately, the hacker attempted an unauthorized leak using a hot and cold wallet. In the end, stolen BTCs were transferred to over 10 different addresses.
However, DMM Bitcoin prioritized the safety of its users and immediately suspended all its operations.
That same year, cybercriminals known as Lazarus Group allegedly used a Cambodian online marketplace to steal and solicit more than $35 million.
Blockchain investigator ZachXBT discovered that the stolen Bitcoin was first mixed at the privacy exchange service. Then, it was withdrawn and sent to Ethereum or Avalanche through THORChain.
This suggests these cybercriminals constantly explore new tactics to steal and launder funds.
Source: https://www.thecoinrepublic.com/2025/01/16/us-government-to-return-stolen-94643-bitcoin-units-to-bitfinex/