As part of a in-kind process, the US government has ordered the return to Bitfinex exchange of the 94,000 Bitcoins (BTC), which were seized as a result the Bitfinex hack in 2016.
In the ruling, it was stated that no victims were found for specific crimes of conviction. All assets taken from the defendants have been returned. “Bitfinex Hack Wallet.”The rest of the assets are subject to ongoing proceedings for third party forfeiture.
This decision is in line with the governing body. US Government Filing From Oct. 9, 2020, it stated that Bitfinex was the only victim.
The Department of Justice (DOJ), less than a week later, has released a statement. Information sought On potential victims, in addition to exchange. But no one came forward and so the government issued a restitution order.
Restitution was related to plea deals of Heather Morgan and Ilya Liechtenstein, the couple who were at the heart of this high-profile lawsuit. The pair admitted to conspiring in August 2023 to launder approximately $71,000,000 worth of BTC (119,754 BTC) at the time the hack occurred.
Morgan, who was sentenced in November to 18 months in jail, received a five-year sentence for laundering crypto that Bitfinex had stolen.
Hack and Restitution
Hackers took nearly 120,000 BTC during the Bitfinex hack of 2016. As a result, all balances were reduced by 36%. Users received a token called “BFX” as compensation.
BFX could be sold, redeemed, or traded by users at a parity of 1:1 with US dollars. All BFX had been redeemed by April 2017.
Bitfinex will receive $312,219.71 and 6917 Bitcoin cash (BCH) in July 2023 from the US Department of Homeland Security. This amount will be used to redeem Recovery Right Tokens that users have.
Bitfinex also plans to distribute up to 80% (of any assets remaining) to holders of UNUS SED LEO tokens over the next 18 months.
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