Bitfinex Gains Some of Their Stolen Bitcoins Back


Cryptocurrency exchange Bitfinex has recently gained over 27.66270285 Bitcoin from the US government, which was initially lost during the August 2016 hack, thanks to the hard efforts of US law enforcement. These are currently being converted to USD and paid to RRT (Recovery Right Token) Holders.

Previously during August 2016, 119,756 BTC were stolen from Bitfinix (At the time it was worth $73 million). The recently reacquired amount is estimated to total around $110,000 at today prices, which law enforcement managed to retrieve during November 2018.

“Since the well documented hack in 2016, Bitfinex has collaborated with international law enforcement agencies to provide intelligence and assist with investigations. Bitfinex was alerted in November 2018 that the US government had obtained bitcoins believed to be proceeds from the 2016 hack,” the exchange announced in an blog post.

Chief Financial Officer of Bitfinex, Giancarlo Devasini said,

“Over two years following the hack of the Bitfinex platform, today we see the results of a clear and robust response strategy and the efforts of the US government. It gives us great pleasure to be able to reimburse our traders that were loyal to us and believed in us at a very difficult time.”’

During 2016, Bitfinex had told customers that were affected by the hack attack to accept the losses of up to 36% of their holdings compensating them with tokens of credits. Bitfinex then went on to create a cryptocurrency of their own by the name of BFXcoin, which was then issued to users equaling their personal losses. These tokens had a value of 1 BFX to 1 dollar lost and could then be traded in for repayment by the exchange. After eight months had passed, all BFXcoin holders had their tokens redeemed at this rate, according to the exchange.

 


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Keith Wang

Keith Wang is a writer and programmer specializing in bitcoin and blockchain technology. Keith has been a long time believer of bitcoin and blockchain technology and spends his free time following up with blockchain news. You can contact Keith at keith@cryptomenow.com

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