Bitfinex May Return 95k BTC Seized in 2016 Hack
Date: 2025-01-16 Author: Gabriel Deangelo Categories: BUSINESS
Federal prosecutors said they plan to return 80% of the 119,754 BTC stolen in the Bitfinex hack.
During the investigation, authorities seized 94,643 BTC from Ilya Lichtenstein, who orchestrated the 2016 Bitfinex hack along with associate Heather Morgan, aka “RazzleKhan.” The funds were found in the original wallet used by Lichtenstein during the hack. In their filing, prosecutors said the funds could be returned as “restitution in kind.” Back in October, federal lawyers indicated that Bitfinex was likely the only victim, making such a return plan possible under U.S. law.
The remaining funds, about 25,000 BTC, will be more difficult to recover. As explained in court documents, some of the stolen tokens were moved through crypto mixers, darknet markets, and other complex technical platforms.
These money laundering activities make it impossible to directly return these assets. The Justice Department has proposed using forfeiture to recover the remaining funds, but the timing of this process is unknown.
In total, Lichtenstein and Morgan stole about 120,000 BTC in 2016, now worth nearly $12 billion. Lichtenstein was arrested in February 2022 and pleaded guilty in 2023 to conspiracy to commit money laundering.
Lichtenstein was sentenced to five years in prison, and Morgan was sentenced to 18 months in prison.
