Court Reaches Decision Regarding Bitfinex and Stolen Bitcoin

A recent ruling by the U.S. District Court for the District of Columbia indicates that Bitfinex is likely the sole entity eligible for restitution concerning the 119,754 BTC that was stolen during the notorious 2016 hack.

This development comes on the heels of Ilya Lichtenstein and Heather Rhiannon Morgan pleading guilty to charges of money laundering and conspiracy to defraud the U.S., stemming from their actions in 2022.

The pair allegedly used advanced hacking techniques to breach Bitfinex’s systems, executing over 2,000 transactions to transfer the stolen Bitcoin into a personal wallet. They then attempted to launder these funds, even converting a portion into gold coins that Morgan reportedly buried.

Following their February 2022 arrest, law enforcement has recovered around 95,000 stolen BTC, valued at about $5.89 billion, in addition to $475 million in related assets. These cryptocurrencies are currently held in an FBI-controlled wallet.

Despite the significant theft, the U.S. government has revealed that it does not recognize any other potential victims besides Bitfinex under the Crime Victims’ Rights Act. This conclusion likely stems from the fact that Bitfinex had previously issued “BFX” tokens to affected customers, all of which were redeemed by April 2017, implying that no other victims remain eligible for restitution.