Hacker Returns $19.3 Million to US Government Crypto Wallet After $20M Theft

The funds, initially seized from the 2016 Bitfinex hack, were suspiciously transferred before most were returned, leaving $1.2 million still missing.

The US government-controlled crypto wallet was drained of $20 million, including stablecoins and Ethereum, in a suspicious transfer linked to the 2016 Bitfinex hack.
On-chain analytics highlighted that the transferred funds were moved to instant exchanges, raising concerns about potential money laundering activities.
Approximately $19.3 million of the stolen funds were returned to the government wallet, but $1.2 million remains unaccounted for, according to Arkham Intelligence.
The transactions involved stablecoins like Aave USDC, USDC, and Tether, with the hacker converting some assets into Ethereum.
Blockchain sleuth ZachXBT identified the transactions as potentially nefarious and noted the involvement of exchange platforms like Binance for liquidity.