U.S. Government Wallet Hacked: $20 Million Stolen from 2016 Bitfinex Funds
On October 24, a significant security breach occurred when a wallet likely belonging to the U.S. government was hacked, resulting in the theft of $20 million in funds tied to the infamous 2016 Bitfinex heist.
The wallet in question contained assets seized from the Bitfinex hack, including various cryptocurrencies like USD Coin, Tether, and Ethereum. According to Arkham Intelligence, the hacker swiftly transferred the stolen assets to a new wallet and began converting the stablecoins into Ethereum, laundering the funds through addresses associated with money laundering activities.
The stolen assets originated from the 2016 breach when Ilya Lichtenstein and Heather Morgan hacked the Bitfinex exchange, absconding with 120,000 Bitcoin valued at approximately $8.2 billion today. Arrested by U.S. authorities in 2022, the couple faced charges of money laundering and conspiracy, eventually pleading guilty in July 2023.
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Lichtenstein initially admitted to laundering the funds but later acknowledged his role in the hack itself. In recent court filings, U.S. prosecutors suggested reduced sentences for both, citing their cooperation with law enforcement.
Morgan may receive 18 months in prison, while Lichtenstein could face five years, a sharp decline from the 20-year sentence originally sought. The authorities emphasized Lichtenstein’s collaboration with investigators and his lack of a prior criminal record as justifications for leniency.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
