In a surprising move, wallets containing bitcoin seized by the U.S. government from the notorious Bitfinex hack have been activated, leading to the transfer of nearly $1 billion worth of bitcoin to unidentified addresses. This development follows the guilty pleas of Ilya Lichtenstein and Heather “Razzlekhan” Morgan, associated with the hack.
Series of Mysterious Transactions
The transfers occurred through a series of four transactions in less than two hours, sparking curiosity about the government’s intentions. Initially, a wallet identified by Arkham Intelligence as holding government-seized Bitfinex hacker funds moved 1 BTC, followed by the transfer of the remaining 2,817 BTC, totaling about $173 million. Subsequently, another wallet with approximately 12,300 BTC made similar transactions, culminating in the movement of about $923 million worth of bitcoin based on the current market price.
Unclear Motive
The purpose behind these substantial transfers remains unclear, and the U.S. Justice Department has yet to provide comments on the matter. This activity coincides with a volatile trading day for bitcoin, which saw its price fluctuate significantly, even surpassing $64,000 at one point.
Background of the Bitfinex Hack
The Bitfinex hack stands as one of the most significant security breaches in the cryptocurrency industry, with approximately 95,000 stolen bitcoins, valued at $3.6 billion at the time of seizure. The case gained additional notoriety due to the involvement of Heather “Razzlekhan” Morgan and Ilya Lichtenstein. Reports indicate that another U.S. government wallet still holds about 94,600 BTC of the seized funds, worth roughly $5.79 billion.
