A recent U.S. government filing has revealed that cryptocurrency exchange Bitfinex may be the only entity eligible for restitution following the infamous 2016 hack, in which approximately 120,000 Bitcoin (BTC) were stolen.
The Bitcoin, valued at $72 million at the time, is now worth around $7.4 billion, reflecting the significant appreciation of the cryptocurrency.
The filing by the U.S. Attorney’s Office for the District of Columbia highlighted that no other victims have been identified under the Crime Victims’ Rights Act (CVRA) or the Mandatory Victims Restitution Act (MVRA).
Bitfinex had previously compensated its customers by issuing BFX tokens, which allowed affected users to redeem, sell, or exchange the tokens. By April 2017, all tokens were redeemed, and some users even received equity in Bitfinex’s parent company, iFinex.
In February 2022, authorities managed to seize 94,643 BTC connected to the hack, marking one of the largest recoveries in cryptocurrency history. These funds, now worth around $5.8 billion, are expected to be returned to Bitfinex as the sole eligible recipient for restitution.
In addition to Bitcoin, Bitfinex also recovered $312,219 and 6.917 Bitcoin Cash (BCH) in July 2023, which will be used to redeem Recovery Right Tokens (RRTs) that were issued after the hack.
While Bitfinex has already taken significant steps to address the losses incurred by its customers, the exchange remains the primary party recognized by the government for restitution.
The court’s final decision will likely reinforce Bitfinex’s position as the sole victim, with no further claims anticipated from individual users.
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