Bitcoin From the 2016 Bitfinex Hack Mysteriously on the Move Again

Little over 30 bitcoins stolen from the prominent cryptocurrency exchange Bitfinex back in 2016 have mysteriously started moving once again, even after the arrest of two individuals allegedly involved in the exchange’s security breach.

According to Whale Alert, a large transaction monitor, an initial transaction of 28.39 BTC was made from a wallet associated with the 2016 Bitfinex hack before a second transaction of 2.27 BTC was made. Both went to unknown wallets, with the total amount being transferred coming close to $300,000.

The hackers often move their funds around, presumably in an attempt to launder them so they can cash out. In June 2019, they moved over 172 BTC over a total of five transactions to unknown addresses. In August, around 30.6 BTC, then worth over $350,000, were moved as well.

In total, the hackers stole nearly 120,000 bitcoins from the popular cryptocurrency exchange in 2016. At the time, one bitcoin was trading for around $600, which means they stole roughly $72 million. As the price of the flagship cryptocurrency skyrocketed since then, the 120,000 BTC are now worth over $1 billion.

Taking this into account users on social media started predicting a price cash, as if the hackers were able to cash all of their funds out the price of BTC would certainly drop significantly. To cash out, however, they have to find a way to launder the funds – a challenge at a time in which every liquid cryptocurrency exchange enforces know-your-customer (KYC) checks.

Bitcoin from the 2016 Bitfinex hack moving may be surprising, as Israeli police last year arrested two brothers allegedly involved in the security breach. It’s worth pointing out, however, in the UNUS SED LEO token whitepaper the exchange appeared to give the hackers a chance to return their funds and keep a specific percentage “as a reward for collaborating in finally resolving” the issue.

Referring to past transactions Anneka Dew, Bitfinex’s marketing director, noted they weren’t related to the procedure outlined in the token’s whitepaper.

Featured image via Pixabay.