Victor Ugochukwu · Oct 27, 2020 . 6min read
BitFinex to Reward US$400 Million for Return of Stolen 2016 Bitcoin
Bitfinex, the leading cryptocurrency exchange has announced a reward of $400M for Return of Stolen 2016 Bitcoin
By Shilika · Aug 4, 2020 . 7min read
Bitfinex announced a reward of $400M for Return of Stolen 2016 Bitcoin. Apparently, the hackers seemed to have stolen 119,755 bitcoins in aggregate in August 2016. The hackers breached the security systems of the exchange in order to do so.
BitFinex, the leading digital asset trading platform, has announced this reward with the expectation of obtaining the stolen digital assets. It further stated that the malicious attack has deeply affected the exchange. They have learned painful lessons for strengthening security measures to avoid future thefts. The announcement of $400M reward for the hackers is the latest quest of the exchange to recover the stolen property.
The current market worth of the stolen Bitcoin stands up to $1.344 billion today. Bitfinex is prepared to grant an aggregate 30% of that amount equal to $403,288,427.
BitFinex’s $400M reward and confirmation process
Bitfinex aims to reward 5% to those who put the exchange in contact with the hackers. Moreover, an aggregate of 25% of the total stolen property recovered will serve as a reward to the hackers. The identity of the hackers, however, remains undisclosed. The above rewards would classify as costs incurred to recover the stolen digital assets.
The confirmation process involves the hacker sending one bitcoin from the wallet address instrumental in the hack. The hacker would require to send it to the Bitfinex’s specified wallet address. However, in the process, the identities of all the parties will be protected. Bitfinex will reserve all rights to impose any restrictions to secure the process and smooth functioning of the same.
Since the Crypto Industry is growing, Security has been one of the significant threats in the exchange business. However, over the years, Bitfinex is prioritizing security measures. In terms of settlement of the Satoshi Hack 2016, Bitfinex had allotted BFX, the native token to the users. The price of the BFX token has risen from less than $0.20 to $1 in 2 years. About more than 52M BFX token were converted to shares of Ifinex shares in a 1:1 token to shares ratio. Ifinex.Inc is the possessor of Bitfinex and Tether.
Bitfinex is actively working with law enforcement authorities to recover the stolen assets. However, in February 2019, the authorities recovered about 27.66270285 bitcoins. Therefore they were paid to Recovery Right Token holders by converting them to US dollars.
Is Security an ultimate Priority?
The Crypto ecosystem is occasionally affected by illegal hacks and malicious attacks. The hacks demonstrate that criminal gangs seem to seek loopholes to perpetrate these attacks. Recently Cryptodose reported on the Ledger data breach and Twitter hack. The Crypto Ecosystem has drastically affected by the same. Security is one crucial aspect of survival in the Crypto & Blockchain Industry.
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Victor Ugochukwu · Oct 26, 2020 . 5min read