US Government Identifies Bitfinex as Sole Victim in 2016 Hack, Users Encouraged to File Claims Directly with Exchange

In a recent court filing, the US government identified Bitfinex as the “sole victim” eligible for restitution from the infamous 2016 hack. This means that users who lost money during the hack are encouraged to file claims directly with the exchange.

The government has recovered billions of dollars related to this incident. However, the distribution of these funds has been delayed due to a large number of private claimants coming forward.

According to the US government, Bitfinex is the only entity recognized as a victim under the Crime Victim’s Rights Act (CVRA) and the Mandatory Victim Restitution Act (MVRA). This was stated in a filing made to the US District Court in Washington, DC.

The filing noted, “The government is not aware of any person who qualifies as a victim under the CVRA or for restitution under the MVRA, beyond perhaps Bitfinex… but seeks such relief out of an abundance of caution, in order to provide notice to members of the public—in particular, to former account holders… and to give them an opportunity to advance potential claims.”

This makes it clear that the federal government has singled out Bitfinex as the main way for former users to get their funds back. In 2022, the Department of Justice seized over $3.6 billion in stolen assets. As a result, many claimants stepped forward, making it challenging for law enforcement to sort through legitimate and fraudulent claims.

Bitfinex has been working closely with authorities to help return customer funds. In 2023, they reported that the government returned over $312,000 in cash and Bitcoin Cash (BCH), but no other assets were mentioned. Their restitution plan for 2023 includes payouts to holders of Bitfinex’s LEO token, which has seen a 40% increase since today’s filing.

The filing clearly outlines how defrauded users can recover their money. The government will only make recovery payouts to Bitfinex, which means that all private claims must go through the exchange.