Hackers have once again moved Bitcoin funds stolen from crypto exchange Bitfinex back in 2016 to unknown wallets.
October 8, 2020 | AtoZ Markets – The hackers responsible for the Bitfinex hack in 2016 have moved 2,470 Bitcoin worth $4.6 million to unknown wallets today, according to Whale Alert, a Twitter bot that traces large cryptocurrency transactions.
The hackers moved the stolen funds to new wallets in two separate transactions of 435 BTC and 8 BTC. On Wednesday, the same hackers moved more than $26 million moved across seven transactions. The transactions ranged between $4.1 million and $4.8 million in value, with one smaller transaction of about $12,000.
Bitfinex hackers have transferred about 2.4% in stolen BTC
As such, during this week hackers have transferred about 2.4% of the total 120,000 BTC stolen by hackers in the 2016 Bitfinex hack.
As a reminder, the hackers pilfered 120,000 BTC from Bitfinex in August 2016, worth $72 million at the time. Currently, the stolen Bitcoin is worth more than $1.26 billion and represents 0.57% of the total BTC supply. In February 2019, U.S. authorities recovered a small portion of the hacked Bitcoin.
“Bitfinex is offering a reward to any persons that connect us with hackers responsible for the unauthorized transfer of almost 120,000 bitcoins from the exchange in August 2016. As part of the same initiative, Bitfinex is also offering a reward to the hackers themselves for the return of the stolen property,” the exchange said in August.
Bitcoin traders fear larger dump
As a custom, these hackers transfer stolen funds in smaller batches between KYC-less exchanges before shifting them to less-regulated Bitcoin exchanges like Huobi or Binance. They do this to minimize their losses should their ill-gotten assets get seized by authorities.
Bitcoin traders and holders have reason to worry about the movement of these coins. Hackers tend to take stolen coins out of the circulating supply–sometimes for years–before re-entering through mixers and small exchanges. The sudden movement of these hacked coins threatens to push down prices by adding new Bitcoins to the circulating supply.
While the amount traded today is relatively small, the fear of a larger dump still lingers over the market.
Think we missed something? Let us know in the comment section below.