The post Bitfinex Wallet Hacker Returns $19.3M To US Government Wallet appeared on BitcoinEthereumNews.com.

Blockchain analytics firm Arkham Intelligence has confirmed that a hacker allegedly breached U.S. government wallets. He drained nearly $20 million in crypto assets and has returned most of the stolen funds. The stolen money, which was from the Bitfinex hack of 2016, was reported to have been retrieved within a day of the attack. According to Arkham Intelligence, around $19.3 million or 88% of the funds were returned to the original government-controlled wallet. This raised a concern over the reasons for such quick action. Details of the Breach and Recovery On 24th October, Arkham Intelligence noted the activities of the crypto wallets that are connected with the United States government. They revealed a $20 million transfer to the addresses of the mixer service. – Advertisement – These addresses contained funds obtained from cybercriminals including Ilya Lichtenstein and Heather Morgan in the Bitfinex hack. Source: X As per on-chain data, the hacker moved a large number of ETH, USDC, and USDC from the government’s wallet at first. However, Arkham has established that the hacker sent most funds back to the U.S. government wallet with the address starting from “0xc9E” by October 25. Altogether, the crypto hacker cashed out about 2,412 ETH, 7,200 USDC, and $13.2 million in aUSDC. According to blockchain analyst ZachXBT, the majority of the funds were recovered. Around $700,000 were still missing as these were sent through instant exchanges making it difficult to track them. Questions Raised on U.S. Government Wallet Security The breach has raised concerns regarding the security protocols of wallets managed by the U.S. government. Although the government quickly regained most of the stolen funds, the crypto hack left many on-chain analysts questioning the safeguards in place for crypto assets. Notably, on-chain detective Ergo BTC pointed out possible inconsistencies in the wallet’s security structure. He…

---

Filed under: News - @ October 27, 2024 9:10 am