US: Bitfinex's 94,000 Bitcoins are ready for return

By Daniele Corno

The 94,000 BTC stolen in 2016 will be returned to Bitfinex. The US government confirms: the platform is the only victim. Here are the details

US: return of stolen Bitcoins to Bitfinex

The U.S. government said the 94,000 Bitcoins seized in the 2016 Bitfinex hacking case will be returned to the exchange.

As expected

*GOVT SAYS SEIZED BITCOIN FROM 2016 BITFINEX HACK SHOULD BE RETURNED IN-KIND

Do they just ask Paolo for the addy? https://t.co/8iwx6J1XR6 pic.twitter.com/ndNd1UrdWG

— db (@tier10k) January 15, 2025

The decision was upheld in a recent filing in the District of Columbia District Court, emphasizing that Bitfinex and its parent company iFinex are the only victims of this event. This development follows the plea agreement of Ilya Lichtenstein and Heather Morgan, who admitted their guilt in the laundering of 119,754 BTC.

At the time, the value of the ill-gotten gains was $71 million, although, by the time of the seizure in 2022 it had turned into nearly $4 billion, marking the largest asset recovery in the history of the Justice Department. At present, the amount related to restitution exceeds $9 billion.

The government also confirmed that the restitution includes all confiscated assets related to the hack, as stipulated in the plea agreements. Bitfinex has already stated that once the funds are recovered, 80 percent of the Bitcoins will be sold to buy back and burn LEO tokens, which were issued to cover users’ losses after the attack.

From the largest seizure to restitution: a landmark case

Lichtenstein and Morgan, arrested in 2022, were sentenced to five years and 18 months in prison respectively . Morgan, also known as the “Razzlekhan” rapper, had even earned a reputation as a cybersecurity expert, offering advice on how to avoid attacks similar to the one she orchestrated.

Bitfinex also stressed its commitment to remove all LEO tokens from circulation within 18 months of receiving the recovered funds.

In the meantime, the LEO token since the first reports of restitution in the previous months, has surged +60% in 60 days and is currently at its all-time highs above the $9.5 area.