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Bitfinex will refund victims of the 2016 hack

Important facts:
  • The amount recovered was not enough to replace all customer losses, the company said.

  • The exchange will redeem the recovery tokens issued to victims after the hack.

Cryptocurrency exchange Bitfinex reported yesterday that it received more than $300,000 in cash and almost $7,000 in Bitcoin Cash (BCH) from the US Department of Homeland Security (DHS). This comes as a result of recovering the funds seized in an ongoing lawsuit against people linked to the theft of the platform in 2016.

However, the assets will be returned to Bitfinex users who suffered losses from the attack seven years ago At that time, the amount stolen was 119,756 bitcoinsfor a value equivalent to $72 million ($3,700 at today’s cryptocurrency price).

“Per the terms of Bitfinex’s contractual obligations to token holders, these funds will be used to redeem Recovery Rights Tokens (RRT) issued by Bitfinex following the 2016 security breach,” the company said in a statement.

However, with 30 million RRTs currently in circulation, The recovered amount is not enough to redeem all issued RRT tokensTherefore, each user is likely to receive only a small amount as a refund.

The company adds that all RRT holders are required to redeem an amount of $1 in line with their contractual obligations. The remaining 80% of any additional assets recovered will be paid out to holders of Unus Sed Leo token, a utility token used in the iFinex ecosystem, which includes BitFinex.

The company stated that starting today, July 6, 00:00.01 UTC, redeemed tokens will be prorated by RRT holders.

As CriptoNoticias reported last year, Ilya Lichtenstein and Heather Morgan have been charged with money laundering from the billionaire hack to Bitfinex. This came after they were arrested and one of the wallets confiscated, which they said they used to carry out “complex money laundering processes”.

The discovery of these keys, stored in an encrypted document in a cloud service and containing the addresses of more than 2,000 accounts, allowed the US government to take control of 94,000 BTC

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