U.S. Court Rules in Favor of Bitfinex for Bitcoin Recovery After 2016 Hack
U.S. Court Rules in Favor of Bitfinex for Bitcoin Recovery After 2016 Hack 16.01.2025 14:00 2 min. read Alexander Stefanov SHARE: 0 SHARES A federal court has ordered the return of 94,643 Bitcoin, seized after the 2016 Bitfinex hack, back to the exchange. This decision stems from voluntary restitution agreements tied to plea deals with the convicted hackers, Heather Morgan and Ilya Lichtenstein. The court ruled that Bitfinex is the primary victim of the hack, excluding its users from being classified as “victims” under U.S. law. Both convicted individuals and iFinex, Bitfinex’s parent company, acknowledged this in prior agreements. The seized Bitcoin will now be transferred to the exchange, with laundered funds facing separate forfeiture processes. To address user losses from the hack, Bitfinex plans to redeem Recovery Right Tokens issued to affected customers. Additionally, 80% of recovered funds will go toward buying back and burning UNUS SED LEO tokens, a debt token created post-hack. This buyback program is expected to take 18 months and has already triggered a 4% rise in LEO token prices. While a large portion of the stolen Bitcoin is being recovered, around 25,000 BTC remains tied to advanced laundering methods like peel chains and mixers. These funds are subject to separate forfeiture procedures due to the difficulty of linking them directly to the original theft. Morgan and Lichtenstein received sentences of 18 months and five years, respectively, for their roles in laundering the stolen funds. The ruling sets an important precedent in recognizing crypto property rights and may influence future cases, such as those involving FTX customer funds. SHARE: 0 SHARES More Crypto Crime News How Stablecoins Became the New Face of Crypto Crime Stablecoins, once seen as a reliable asset in the crypto market, have become the most-used currency for illicit activities, accounting for 63% of all criminal transactions in 2024, according to Chainalysis’ 2025 Crypto Crime Report. 16.01.2025 12:00 2 min. read Alexander Zdravkov American Pastor Accused of Running $6M Crypto Fraud Scheme A pastor from Washington state, Francier Obando Pinillo, has been indicted for allegedly defrauding over 1,500 people through a cryptocurrency scheme called Solano Fi. 13.01.2025 22:00 1 min. read Alexander Stefanov Crypto Firm Co-Founder Admits to $9M Fraud Scheme A cryptocurrency firm co-founder has admitted to defrauding thousands of investors through false claims of high returns, raising over $9 million before his scheme unraveled. 12.01.2025 20:00 1 min. read Alexander Stefanov Litecoin Recovers Social Media Account After Brief Hack Promoting Scam Token On January 11, Litecoin’s official social media account fell victim to a brief hacking incident, during which a scammer attempted to promote a fake Litecoin token on the Solana network. 12.01.2025 10:00 1 min. read Alexander Stefanov QR for the Bitcoin/Ethereum Address: QR for the Bitcoin/Ethereum Address: