US governments returns 27.7 BTC to Bitfinex following 120K Bitcoin hack

25 Feb, 2019 | Updated: 25 Feb, 2019
by Jelmer van der Dussen
Breaking News
US governments returns 27.7 BTC to Bitfinex following 120K Bitcoin hack

Bitfinex has announced on Monday that the US government has returned 27.7 BTC (worth $105K) to the exchange. The Bitcoins were unlawfully taken during a security breach in August 2016.

The exact amount that has been returned to Bitfinex is 27.66270285 BTC. According to the exchange, this BTC has been coverted to USD and paid to RRT (Recovery Right Token) Holders.

Bitfinex states that it has collaborated with international law enforcement since the well documented hack in August 2016, and that it got notified in November 2018 that the US government had obtained BTC believed to be taken during the 2016 hack.

The 27.7 BTC is only a small part of losses during the hack. During the security breach, 119,756 Bitcoins were stolen. On August 2nd 2016, this had a total worth of $72 million. Nowadays, this would have been worth about $450 million.

After the hack, Bitfinex launched a Hack Recovery Plan. With this plan, losses were generalised over all accounts and accounts were credited 1 BFX token for every dollar that they 'lost'. Within 8 months after the hack, all BFX token holders had their tokens redeemed at 100 cents on the dollar or exchanged their tokens for a capital stock of IFinex. The investors choosing iFinex shares received the Recovery Right Token.

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