On October 24, a security hack led to the theft of over $20 million from a wallet likely under the control of the American government. This wallet contained money from the infamous 2016 Bitfinex breach.
Beginning with “0x348,” the attacker channeled the pilfers into a wallet, according to blockchain analytics company Arkham Intelligence. Among the several cryptocurrencies this wallet carried were USD Coin, Tether, USDC, and Ether. The hacker started turning these stablecoins into Ethereum after the heist and appears to be laundering the money through addresses connected to illegal money laundering companies.
The compromised money originates from Ilya Lichtenstein and Heather Morgan, the duo responsible for the 2016 Bitfinex hack. They stole approximately 120,000 Bitcoin, which is currently valued at approximately $8.2 billion. Both were arrested in 2022 and are presently scheduled to be sentenced for November.
Under a July 2023 plea deal, Lichtenstein and Morgan acknowledged their guilt over allegations of money laundering and conspiracy. Morgan is looking for a lowered term of eighteen months, while Lichtenstein’s participation in planning the hack calls for a five-year sentence.
The U.S. Department of Justice has confirmed that the specifics of this latest attack remain unknown. Experts are actively tracking the movement of the pilfers as well as the continuous court cases involving Lichtenstein and Morgan, as the probe is under way.
