Breach Details:
A hacker accessed a wallet, likely controlled by the U.S. government, on October 24. This wallet held $20 million in funds seized from the 2016 Bitfinex hack.
Current Holdings:
Arkham Intelligence estimates that the hacker's address now holds approximately $13 million in assets.
Transaction Details:
The hacker sent funds to a wallet beginning with "0x348," containing USD Coin, Tether, aUSDC, and Ether.
Asset Conversion:
The hacker has started converting stablecoins to Ethereum and is moving funds through addresses suspected to be linked to money laundering.
Bitfinex Hack Background:
In 2016, Ilya Lichtenstein stole 120,000 bitcoins (valued today at around $8.2 billion) from the Bitfinex exchange. This was later seized by U.S. authorities, marking a historic digital asset seizure by the Department of Justice.
Arrests and Guilty Plea:
Lichtenstein and his wife, Heather Morgan, were arrested in 2022. They pled guilty to money laundering and conspiracy charges in July 2023, securing reduced sentences.
Prosecutor’s Recommendation for Morgan:
Prosecutors recommended an 18-month prison sentence for Morgan on October 9, citing her cooperation and limited role in the scheme.
Prosecutor’s Recommendation for Lichtenstein:
A five-year prison sentence was recommended for Lichtenstein on October 15, considering his cooperation with law enforcement and lack of prior criminal record. This was reduced from an initial 20-year recommendation.
