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Hacker steals $20M from US-seized Bitfinex crypto wallets

Hacker steals $20M from US-seized Bitfinex crypto wallets

GrafaGrafa2024/10/25 10:37
By:Mahathir Bayena

On October 24, a hacker compromised a crypto wallet believed to be under the control of the United States government, stealing $20 million. 

According to on-chain analytics firm Arkham Intelligence, the targeted wallet contained funds seized from the 2016 Bitfinex hack. 

The stolen assets were transferred to a wallet beginning with “0x348,” which held various cryptocurrencies, including USD Coin (CRYPTO:USDC), Tether (CRYPTO:USDT), aUSDC (CRYPTO:AUSDC), and Ether (CRYPTO:ETH)

Arkham Intelligence reported that the hacker has begun converting the stablecoins into Ether and is allegedly laundering the funds through associated addresses linked to a money laundering service. 

The compromised assets originated from a significant seizure by the US Department of Justice following the 2016 Bitfinex hack, which was orchestrated by Ilya Lichtenstein and his wife, Heather Morgan. 

The couple stole 120,000 BTC (CRYPTO:BTC), valued at around $8.2 billion at current prices. 

Lichtenstein and Morgan were arrested in 2022, and the stolen assets were recovered in what became the largest digital asset seizure in the history of the US Department of Justice. 

The couple later reached a plea agreement in July 2023, admitting to charges of money laundering and conspiracy to defraud the US government. 

Lichtenstein also confessed to being the mastermind behind the hack. 

The timing of this recent wallet breach coincides with the couple’s upcoming sentencing in November. 

US prosecutors have recommended an 18-month prison sentence for Morgan, considering her cooperation and minor role in the crime. 

Lichtenstein, viewed as the primary architect, is facing a recommended five-year sentence, significantly reduced from the initial 20-year term due to his cooperation with investigators and a lack of prior criminal history.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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