US Arrests Couple Behind 2016 Bitfinex Hack, Recovers $3.6B in BTC
In a major development, US authorities have apprehended Ilya Lichtenstein and Heather Morgan for their involvement in the 2016 Bitfinex hack. The couple was charged with conspiring to launder proceeds from the stolen Bitcoin (BTC). The hack resulted in the loss of 119,754 BTC, valued at around $70 million at the time, impacting thousands of users globally.
The hack, which took place in 2016, left numerous individual users and smaller investors uncompensated for their losses. Bitfinex, the exchange targeted in the hack, distributed the losses among its users, reducing their balances by approximately 36%. Affected users were initially issued BFX tokens as compensation, which were fully redeemed within eight months.
In February 2022, Morgan was released on bail, sparking suspicions within the crypto community. However, it wasn't until later in the year that Lichtenstein and Morgan were arrested and charged. Authorities seized over 94,000 BTC, worth roughly $3.6 billion at the time, from the couple. The government has proposed creating a special website to assist potential victims in filing claims and receiving information.
The arrest of Lichtenstein and Morgan signifies a significant milestone in the ongoing investigation into the Bitfinex hack. The US government is proceeding carefully to ensure no potential victims are overlooked. With the recovery of a substantial amount of stolen BTC, authorities are working towards compensating the affected users and bringing those responsible to justice.
