Bitfinex has reported that 27.66 Bitcoin that was stolen when the exchange was hacked in 2016 has been retrieved and returned to them by the U.S government. The hack, which took place in August 2016, saw 119,756 Bitcoin stolen from the Hong Kong-based exchange and remains the second biggest hack in crypto history after Mt. Gox. The haul was worth $71,853,600 at the time and the news resulted in an instant 23% drop in the value of Bitcoin. Two and a half years later, the law enforcement investigation has finally yielded some rewards, meaning that Bitfinex is able to spread some February cheer to its cheated investors with a welcome payout.
— Tuur Demeester (@TuurDemeester) August 2, 2016
Recovery Right Token Holders Receive Windfall
In the aftermath of the hack, Bitfinex implemented a system where one BFX token was given to each user for every dollar lost as a kind of digital IOU. Within eight months, Bitfinex had honored these IOUs, with every holder repaid in full, with some opting to have shares of capital stock in iFinex Inc, Bitfinex’s owner, instead. These individuals were given a Recovery Right Token (RRT), which would entitle them to an amount of any recovered funds commensurate to their holding. As all BFX tokens have been fully redeemed and destroyed, the 27.66 recovered Bitcoin is being converted to USD and paid to RRT holders.
It gives us great pleasure to report we have received bitcoins from the U.S. government that were proceeds of the 2016 security breach. In line with our original recovery plan, this is being converted to USD and paid to RRT holders.
Find out more here – https://t.co/UwCMNERes9
— Bitfinex (@bitfinex) February 25, 2019
Giancarlo Devasini, Bitfinex Chief Financial Officer, commented on the recovery and awarding of the funds:
“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 U.S. 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. We would like to thank U.S. federal law enforcement agencies for their ongoing efforts to investigate the security breach and their commitment to seizing and returning stolen assets.”
27.66 down, only 119,728.34 to go…