Bitfinex hack: 119,754 BTC recovered, 80% used to buy back platform token LEO
The U.S. federal law enforcement agency announced on 2/8 the arrest of 34-year-old Ilya Lichtenstein and his 31-year-old wife, Heather Morgan, in Manhattan. The couple was found in possession of 94,000 BTC stolen from Bitfinex in 2016, which amounted to 119,754 BTC, now valued at over $3.6 billion.
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The Assistant Attorney General of the Criminal Division of the Department of Justice, Kenneth A. Polite, Jr., stated:
Today, the federal law enforcement agencies have once again demonstrated that we can track funds through blockchain, preventing cryptocurrencies from becoming a safe haven for money laundering. Our arrest actions also show that we stand ready to confront those who attempt to use virtual currencies for illegal activities.
Bitfinex also released a statement indicating that they are coordinating with the Department of Justice to ensure that the exchange can recover the stolen bitcoins through proper legal processes and use them for the repurchase of the platform token LEO:
As described in the LEO token whitepaper, Bitfinex will use 80% of the recovered funds for the repurchase and destruction of LEO tokens within 18 months. All operations will be completed through public market trading, including over-the-counter trading, and may involve the direct purchase of LEO tokens with bitcoins.
Currently, there is no information indicating that Lichtenstein and Morgan are the hackers behind Bitfinex. Some community members suggest that the two individuals purchased bitcoins at a low price from the hackers and are now facing charges such as money laundering conspiracy, which could result in a maximum sentence of 20 years in prison.