$ 1,229.31 1.98%
$ 41.06 1.91%
$ 0.073171 8.37%
$ 4.97 12.96%
$ 21,319.00 0.58%
$ 238.42 1.03%

Bitfinex exchange hackers caught five years after, $3.6bn seized

Bitfinex exchange

TL;DR Breakdown

  • Hackers of Bitfinex exchange nabbed five years after.
  • Couples behind hack faces 25 years n prison sentence.

The United States of America Justice Department has announced the arrest of hackers behind the notorious 2016 Bitfinex Exchange hack.

In a release on Tuesday, Bitfinex announced that it seized more than $3.6 billion allegedly stolen during the hack, with authorities detaining a New York couple (Ilya Lichtenstein and his wife Heather Morgan) on allegations that they planned to launder the digital assets.

The 119,756 Bitcoin (BTC) worth $72 million at the time hackers breached security at the exchange in August 2016 — is now valued at more than $5.1 billion. In a statement, Deputy Attorney General Lisa Monaco said that the seizure marks the agency’s largest financial seizure ever.

Bitfinex exchange hackers play hard to catch

After Bitfinex exchange hack in 2016, players connected to the hack moved small amounts of BTC in separate transactions, leaving the bulk of the funds untouched. They did this to avoid any suspicion.

The DoJ reported that it had traced 25,000 BTC of these transferred funds to financial accounts controlled by Lichtenstein and Morgan. Special agents were then able to gain access to and seize more than 94,000 BTC — worth $3.6 billion at the time — from Morgan and Lichtenstein after a search warrant allowed them to view files containing private keys to the wallet.

Ilya Lichtenstein and his wife are charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and conspiracy to defraud the United States, which carries a maximum sentence of five years in prison.

Crypto platforms have faced a number of hacks and scams in recent months. Scammers took home a record $14 billion in cryptocurrency in 2021, according to data from blockchain analytics firm Chainalysis. Most recently, Wormhole, one of the most popular bridges linking the ethereum and Solana blockchains, lost about $320 million in an apparent hack earlier this month.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

Related News

Hot Stories

Shiba Inu price analysis: SHIB continues to rise with $0.00001350 in sight
Crypto News Alert – A New Meme Coin That Will Process 50,000 Transactions Per Second
Ripple price analysis: XRP/USD set to break above $0.54 overnight
Ethereum price analysis: ETH swiftly breaks $1,250, strong upside next week?
Could You Become A Millionaire By Adding These Cryptocurrencies To Your Portfolio - Polkadot (DOT), And Logarithmic Finance (LOG)

Follow Us

Industry News

Mastercard survey: 50% of Latin Americans use crypto
Margin calls and bot liquidations add chaos to crypto as its market cap hits $964b
Bitpanda lays off workers amid the market decline
Coinbase to launch Nano BTC features aimed at retail traders on June 27
Namibian University will offer master's degree in blockchain technology soon