The US government’s account related to the Bitfinex hack has been allegedly hacked. On October 24, a hacker gained access to a wallet that was most likely under US government control. $20 million was taken out of the wallet, which contained money taken from the Bitfinex hack in 2016.
The attacker transferred the money to a wallet that started with “0x348,” which contained USD Coin, Tether, and Ether, according to Arkham Intelligence.
The attack comes a couple of days after the main accused in the case was pleading for a lighter sentence in a US court.
The hacker has begun changing the stablecoins into Ethereum and laundering the money using addresses that are probably connected to a money-laundering service, according to the onchain analytics firm.
What Was The Bitfinex Hack?
The hacker used money that the US authorities had confiscated in the Bitfinex breach in 2016, for which Ilya Lichtenstein and his wife Heather Morgan are scheduled to be sentenced in November.
In August 2016, a cyberattack occurred on the Bitfinex cryptocurrency exchange. About, 119,756 bitcoin, which at the time was valued at almost US$72 million, was taken.
By decrypting an Ilya Lichtenstein file that contained addresses and private keys linked to the stolen assets, the US authorities were able to recover and reclaim a portion of the stolen bitcoin, which was then valued at US$3.6 billion, in February 2022.
Lichtenstein was accused of conspiring with his wife, Heather R. Morgan, to launder the stolen Bitcoin. Lichtenstein acknowledged the theft in August 2023. Morgan and Lichtenstein both entered guilty pleas to money laundering.
On Tuesday, October 15th, the government said in a court filing that Ilya Lichtenstein, who pled guilty last year, should be sentenced to a longer prison term than his rapper wife and fellow conspirator Heather Morgan.
Crypto Scams Rise Each Day: Says FBI
Crypto scams and hacks have been a huge concern for nations all across the globe. A recent statement by the FBI highlighted the urgency with which the governments need to act on it.
As scammers increasingly exploited the speed and irreversibility of digital asset transactions, losses from cryptocurrency-related frauds and scams rose 45% in 2023 compared to 2022, amounting to over $5.6 billion, the U.S. FBI stated.
According to the FBI, although cryptocurrency transactions are documented on publicly accessible blockchains, which make it simple for law enforcement to track down money, money is frequently transferred swiftly outside, where U.S. agents may run into issues like weak anti-money laundering regulations in some countries.
Also read: Indian Crypto Exchange WazirX Hacked, $234.9M Funds Compromised