Bitfinex set to receive 120,000 BTC for 2016 Hack: Report
In the year The United States government appears to be paying Bitfinex, which lost around 120,000 Bitcoin (BTC) in a hack in 2016. In the report, the government says that Bitfinex is the only entity eligible for this significant compensation as it reimbursed its customers with BFX tokens.
Bitfinex is set to earn 120,000 BTC.
In 2016, Bitfinex was hacked, resulting in losses of around 120,000 BTC. Following this, the company reduced customer funds by 36% to cover the losses. However, later in 2017, Bitfinex compensated its customers by issuing special tokens called “BFX”, and some customers were paid with shares from Bitfinex's parent company, iFinex.
After going through all the details, they came to the point where they found that Bitfinex was the primary victim of those 120,000 stolen BTC and not the customer, as the US government had already been paid for BFX tokens and iFinex shares. The report added,
“The government does not know of any person who qualifies as a victim under the CVRA or MVRA, possibly beyond Bitfinex, the victim virtual currency exchange (‘VICTIM VCE').”
However, in 2022, US law enforcement seized approximately 95,000 BTC in connection with the 2016 hack of Bitfinex, which is now worth more than $5.8 billion. Since then, Bitfinex has been contacting and working with the authorities to recover those BTC.
Bitfinex BTC compensation, impact of LEO Token
Bitfinex's LEO token skyrocketed following this US government reform, but now it looks cool. According to coinmarketcap data, when the US government shared the report, the price of the Leo token rose by 14%, rising from $5.84 to $6.88 in two hours. However, later he gave up all these benefits.
At press time, LEO is trading around $6.10 and has experienced a price jump of nearly 2% in the last 24 hours. At the same time, the trading volume has increased by almost 500%, and the interest of the investors and traders has increased significantly, showing significant participation by traders and investors.
