The post U.S. Government Seeks to Return Bitfinex’s Stolen BTC, Claims No Victims in 2016 Hack appeared on BitcoinEthereumNews.com.

The U.S. government is taking decisive action in a landmark case to return substantial cryptocurrency assets stolen from Bitfinex during the 2016 hack. This initiative suggests a shift in how authorities handle digital asset recoveries and victim compensation in the blockchain space. According to a recent statement from a COINOTAG source, “This case sets a precedent for future government involvement in cryptocurrency theft recoveries.” The U.S. government seeks to return $10 billion in stolen crypto assets from Bitfinex, claiming no victims exist in the 2016 hack. Government’s Filing Aims for Crypto Asset Recovery The ongoing legal proceedings regarding the Bitfinex hack of 2016 have drawn significant attention as the U.S. government makes a filing aimed at returning approximately 94,000 Bitcoin (BTC) and other assets to the exchange. The legal submission asserts the return of these funds as “restitution in kind,” emphasizing the government’s commitment to recovering assets for the rightful holders. Clarification on Victim Status After Compensation Plan In a court filing dated January 14, the government declared, “there is no victim for the specific offenses of conviction in this proceeding.” This assertion hinges on the compensation framework established by Bitfinex, where users received a reimbursement that generalized their losses, effectively categorizing all affected customers as having accepted a 36% loss of their holdings. This structure catalyzed the government’s position that no party should be classified as a victim since users were compensated with BFX tokens or shares in the parent company. Public Concerns Surrounding the Recovery Plan The compensation mechanism has incited significant debate among investors and analysts alike, particularly due to Bitcoin’s price surge since the 2016 incident. When the hack occurred, the stolen BTC was valued at approximately $72 million, a stark contrast to the current valuation nearing $10 billion if the assets are recovered. With the…

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Filed under: News - @ January 16, 2025 10:29 am