In a recent development, it has been alleged that the US Government is potentially controlling the 5th largest Bitcoin wallet in the world. The wallet currently owns 94,643 BTC ($2.46 billion). The information was shared by the renowned cybersecurity firm, Peckshield on X. It was further revealed that the wallet had direct links with the Bitfinex hack of 2016.
— PeckShieldAlert (@PeckShieldAlert) August 29, 2023
The alarming findings show that the wallet’s ownership has connections with the seizure address of the hack. Moreover, around 567.5 BTC were also transferred from a wallet to this address. These Bitcoins are equal to around $21.90 million. Back in 2022, it was reported that the US Department of Justice (DOJ) took hold of this account and captured $3.55 billion worth of stolen BTC.
All seized funds remained under the possession of the US Government. At the time of the hack, these Bitcoins were only worth $75 million. Yet, these figures show the magnitude of the Bitfinex hack. In reply to Peckshield’s tweet, netizens criticized the hypocrisy of the US Government, which is potentially controlling the 5th largest BTC wallet, but at the same time, runs regulatory crackdowns on the crypto industry, creating FUD. Lately, the US Government has disrupted the crypto sector with severe regulatory attempts.
The Bitfinex Hacker Makes a Confession and Surrenders his bitcoin wallet
Earlier this month, a New York resident Ilya Lichtenstein pleaded guilty to the accusation of involvement in the Bitfinex cyber attack in 2016. Lichtenstein further confessed to laundering the stolen Bitcoin and accepted his key participation in the hacking attempt.
According to the DOJ,
‘‘Lichtenstein used a number of advanced hacking tools and techniques to gain access to Bitfinex’s network. Once inside their systems, Lichtenstein fraudulently authorized more than 2,000 transactions in which 119,754 bitcoin was transferred from Bitfinex to a cryptocurrency wallet in Lichtenstein’s control.’’
However, the conclusion of all these incidents shows how law enforcement, exchanges, and criminals indulge. But recent events have also disclosed a mammoth BTC holding of the US Government. It is yet to be seen how the market will react to it. Also, this could be a key indicator of the crypto industry’s performance and expansion in the near future.