Bitfinex, the innovative digital asset trading platform, has announced the return of $312,219.71 in cash and 6.917 Bitcoin Cash (BCH) from the U.S. Department of Homeland Security (DHS). This is the latest development in Bitfinex’s ongoing effort to recover assets lost in a significant security breach that hit the exchange in August 2016.
The DHS, through U.S. Customs and Border Protection, executed the seizure as part of a wider operation aimed at identifying and prosecuting the individuals behind the Bitfinex hack. The move underscores the government’s dedication to tracing the illicit gains from the digital theft that rocked the exchange seven years ago.
“We are extremely pleased to be able to reach another successful milestone in the recovery of assets stolen from Bitfinex in 2016. This specific seizure demonstrates the commitment of law enforcement officials to diligently track all the proceeds of the crime committed against Bitfinex almost seven years ago.”
Paolo Ardoino, Chief Technology Officer, Bitfinex
The funds recovered will be used to redeem Recovery Right Tokens (RRTs), digital assets issued by Bitfinex to compensate users for losses incurred from the hack. However, with 30 million RRTs currently in circulation, the returned funds fall short of the amount necessary to redeem all tokens. Following Bitfinex’s contractual obligations, all RRT holders must first be redeemed at $1. After this step, up to 80 percent of any remaining recovered assets will be paid to holders of UNUS SED LEO, another token issued by Bitfinex.
RRT holders are set to have their tokens redeemed pro rata based on their holdings as of July 6, 2023, at 12:00.01 am UTC. The move signals a significant step towards restitution for users affected by the 2016 security breach.
Bitfinex’s recovery journey continues, as the company works with law enforcement and the legal system to reclaim more of the assets stolen during the 2016 hack. The Bitfinex breach, which resulted in a significant loss of digital assets, underscored the security challenges faced by cryptocurrency platforms and led to a more significant focus on security within the industry.
Founded in 2012, Bitfinex has established itself as a leading platform for trading digital tokens, offering advanced trading features, charting tools, and peer-to-peer financing. Despite the 2016 setback, Bitfinex has remained at the forefront of the digital token trading space, providing exceptional support, innovative tools, and facilitating liquidity for experienced traders and providers worldwide.
