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Bitfinex To Pay Customers Recovered Bitcoins Worth $106,000

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U.S. federal law enforcement agencies have retrieved almost 28 bitcoins worth around $106,000 at the time of writing, that hackers looted from cryptocurrency exchange Bitfinex more than 2 years ago.

Bitfinex announced that it received from the U.S. government exactly 27.66270285 BTC that were stolen in the August 2016 security breach.

The exchange said the retrieved cryptocurrencies are being converted to dollars, and paid to its customers.

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There are more than 5,000 RRT (Recovery Right Token) holders who are victims of the crypto heist.

Bitfinex, which is one of the world’s largest crypto exchanges, had lost 120,000 bitcons worth about $72 million in a crypto theft on August 2, 2016. Since then law enforcement agencies from the U.S. and Europe have been investigating the hack with the support of Bitfinex.

The U.S. authorities alerted Bitfinex in November 2018 that they obtained bitcoins believed to be proceeds from this hack.

Bitfinex said that as per the recovery strategy, the company generalized the losses across all accounts, and credited BFX tokens to customers at a ratio of 1 BFX to 1 dollar lost.

Within 8 months of the security breach, all BFX token holders had their tokens redeemed at 100 cents on the dollar or exchanged their tokens for shares of the capital stock of iFinex Inc.

Bitfinex created a tradable Recovery Right Token (RRT) for BFX holders that converted BFX tokens into shares of iFinex.

“As all BFX tokens have been redeemed and destroyed, the full amount of recovered bitcoins today is being distributed pro rata to the RRT holders,” the Hong Kong-based company said in a statement.

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