$9B in Bitcoin From 2016 Bitfinex Hack to Be Returned to the Exchange, DOJ Rules

The U.S. Department of Justice (DOJ) has stated that over $9 billion in Bitcoin recovered from the 2016 Bitfinex hack should be returned to the exchange

The U.S. Department of Justice (DOJ) has approved the return of over $9 billion in Bitcoin to Bitfinex, following the exchange's losses in the 2016 Bitfinex hack.

According to court filings on Tuesday, the DOJ stated that the recovered Bitcoin should be returned to Bitfinex.

The 2016 Bitfinex Hack: A Summary

In 2016, hackers stole nearly 120,000 Bitcoin, then valued at around $12 billion, from Bitfinex in one of the largest crypto heists to date.

While over $9 billion has been recovered, a portion of the stolen assets remains inaccessible due to the複雑な laundering transactions used by the hackers.

The DOJ determined that there were no specific victims in the case, as Bitfinex "generalized" the losses across its customer base.

The exchange subsequently reimbursed users through a repayment program involving tokens redeemable for either cash or company shares.

Lichtenstein and Morgan's Convictions and Sentencing

Ilya Lichtenstein and his wife, Heather "Razzlekhan" Morgan, were convicted for their roles in laundering the stolen funds.

Lichtenstein was sentenced to 60 months in prison, and Morgan, known for her rap career, received an 18-month sentence.

Security Flaws and Laundering Techniques Used

The hack exploited vulnerabilities in Bitfinex's multi-signature wallet security. The DOJ revealed that Lichtenstein and Morgan employed advanced laundering techniques, including crypto mixers, to conceal the origins of the funds.

Returning the Bitcoin to Bitfinex

The DOJ has approved the return of 94,643 Bitcoin to Bitfinex, which is valued at $9.3 billion at current prices.

However, a "third-party ancillary forfeiture proceeding" is still underway to address the unrecovered assets.

Bitfinex's Response to the Hack and Recovery

Bitfinex has maintained that it made customers whole through its reimbursement program, although some users have disputed this, arguing that Bitcoin's significant price increase since the hack should be taken into account.

Cultural Twist: Razzlekhan's Music Continues

Despite her impending prison sentence, Morgan has continued to release music. Earlier this month, she dropped a single titled "Razzlekhan vs. The United States," describing it as a "misfits' anthem."