Breaking: The US government has officially declared cryptocurrency exchange Bitfinex as the sole victim of the 2016 hack. A recent US government filing stated that no other parties qualify as victims under existing laws, focusing restitution efforts solely on Bitfinex.
In 2016, hackers exploited a vulnerability in Bitfinex’s security systems, gaining unauthorized access to customer accounts and stealing approximately 120,000 Bitcoin, currently worth around $7.4 billion. In the immediate aftermath of the hack, Bitcoin's value dropped by 20%, resulting in widespread shock in the market and loss of confidence. In February 2022, a significant portion of the stolen funds – 94,643 Bitcoin – was recovered, marking a crucial milestone in the ongoing investigation. This recovery accounts for around 80% of the stolen funds, which are now expected to be allocated among RRT and UNUS SED LEO token holders to partially offset their losses.
Although the loss-sharing model faced early criticism, Bitfinex remained operational and committed to customer-centric recovery efforts, eventually earning praise from the cryptocurrency community.