U.S Government Return Stolen Bitcoins To Bitfinex

Wilfred Michael 

Wilfred Michael

News reporter

25 February 2019,
12:14
U.S Government Return Stolen Bitcoins To Bitfinex

Hong Kong-based cryptocurrency exchange, Bitfinex, revealed in a Feb 25 announcement, that it received 27.7 BTC ($104,900 based on current market value) from the U.S government.

The said sum was redeemed to Bitfinex after U.S law enforcement agencies recovered funds that were stolen from the Bitfinex exchange during an infamous security breach in 2016.

The exchange has, in turn, redeemed the fund to users who hold Recovery Right Tokens (RRT) allocated to them after the ugly incident.

Bitfinex said in its announcement,

“It gives us great pleasure to be able to reimburse the traders that were loyal to us and believed in us at a very difficult time. We would like to thank U.S. federal law enforcement agencies for their ongoing efforts to investigate the security breach and their commitment to seizing and returning stolen assets.”

RRT Holders To Smile To The Bank

Interestingly, the primary beneficiaries of the now recovered 27.7 BTC (app $104,900) are investors who held Bitfinex’s Recovery Right Tokens (RRT) for nearly two years now.

Following the security breach in 2016 in which the crypto exchange reportedly lost $76 million, they evened the balance on account of all their users and issued units of BFX tokens for each $1 lost.

The exchange subsequently promised to pay back users within eight months and has since fulfilled this obligation and destroyed the issued tokens. Some paybacks were however issued in exchange for shares in the Bitfinex parent company (iFinex) while users who opted for this kind of settlement received special tokens called Recovery Right Tokens (RRT).

Bitfinex cites in its latest announcement that “the full amount of recovered bitcoins today is being distributed pro rata to the RRT holders.”

The exchange is still on the losing side since what authorities just recovered is only a small fraction of what was stolen in 2016. However, having patience seems to have just paid off for RRT holders.

As Stmarket.co reported in November, Bitfinex still faces an ongoing saga regarding its possible involvement in the Bitcoin price spike in 2017.

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