This is a self-written Netflix script. A very strange story that overwhelmed the cryptocurrency community; An industry accustomed to the apparent suicides in Spanish prisons and the auctions of indestructible icons for dead rappers.

The plot includes the US Department of Justice (DoJ), a cryptocurrency exchange with a motley story, a rapper and Forbes magazine writer, a coupon for a new PlayStation, a random magician and $ 4 billion in bitcoin (BTC). .

Alleged hackers who launder money from Bitfinex have fascinated the internet since the incredible story appeared last week. Not surprisingly, Netflix has already announced that it will bring this story to life.

Initially, an obsessive rapper who advises companies on social engineering and the fight against cybercrime named Heather Morgan and her husband, cyber security specialist Ilya Lichtenstein, was caught trying to launder money stolen from the Bitfinex hack in 2016. The money was laundered through purchases of game consoles, Uber and other gift cards.

Morgan at the Lower East Side Art Studio in Manhattan. Source: Twitter
Despite their unusual credentials, police were able to gain access to the couple’s private keys through a cloud storage account, according to a DOJ report. Yes, they stored over $ 3 billion of their private bitcoin keys in the cloud.

But with so many unanswered questions and bizarre circumstances, the news of the Bitfinex billions has made Twitter search for pieces of the puzzle while armchair researchers do their job for them, coming up with even more bizarre theories.

In the midst of wild theories and some dubious reports, this article aims to clear up the hard facts surrounding the Bitfinex hack and what it means now that the Ministry of Justice now owns 90,000 bitcoins.

Bitfinex Hack 2016
Six years ago, the Hong Kong platform Bitfinex was hacked to the tune of $ 70 million. The attack was swift: in just two bitcoin blocks spanning about 20 minutes, all funds were tapped from the Bitfinex wallets under Bitgo’s custody. In total, the thieves stole 120,000 bitcoins worth over $ 4 billion.

As one of the largest hacks in Bitcoin’s history, the hack caused massive sales and the price of Bitcoin fell to around $ 500. It is important to note that the two money launderers, Morgan and Lichtenstein, are not accused of hacking the stock market, and the hackers are still at large.

The Bitfinex team has worked tirelessly to respond to the hack by creating an innovative solution to restore investor confidence. Originally prepared and issued Bitfinex BFX tokens and Redemption Rights (RRT) tokens. If tokenization was popular in 2022, then in 2016-2017, before the ICO mania, the release of tokens was radical.

The tokens served as security for customers who were affected by the hack and could be exchanged for cash or exchanged for shares in iFinex Capital (iFinex is the parent company of Bitfinex).

The BFX and RRT solution, designed so that Bitfinex can subsequently buy back tokens from users or offer shares in the platform as compensation, Bitfinex maintains its liquidity and potentially “rewards investors faster than traditional procedures.”

By April 2017, Bitfinex had returned enough funds to cover or compensate all users affected by the hack eight months ago. Eric Voorhees described the recapitalization process as “fantastic” and Bitcoin podcaster Peter McCormack called the process “the socialization of losses.”

The hack and the subsequent quasi-refund are in sharp contrast to the infamous Mt Gox hack in 2014, when the Mt.Gox stock exchange only now discusses plans to return funds to creditors.

Recovery
Fast forward five years, and while some Bitfinex bitcoins have been repeatedly moved and effectively washed over time, fans of law enforcement and conservative blockchain look on like a hawk.

Due to the openness of the Bitcoin blockchain, hacked currencies have been blacklisted by crypto exchanges, which means that money laundering will be difficult.

90,000 bitcoins, or about $ 3.6 billion, were exchanged in early February. The Ministry of Justice was behind the move, and the film’s main characters, Morgan and Lichtenstein, were thrown into the spotlight. The Ministry of Justice said in a statement that:

Special agents accessed files on an online account controlled by Liechtenstein. These files contained the private keys needed to access the digital wallet that received the stolen funds directly from Bitfinex and allowed private agents to confiscate and return over 94,000 bitcoins stolen from Bitfinex.
As a result, the Ministry of Justice now has 94,000 bitcoins at its disposal. The implications of the United States acquiring so many bitcoins vary

Source: CoinTelegraph

LEAVE A REPLY