A hacker compromised a wallet likely linked to the US government on October 24, draining $20 million, including funds seized from the infamous 2016 Bitfinex hack. According to Arkham Intelligence, the attacker has already converted some of the stolen stablecoins into ETH and is laundering the assets through various addresses.

The wallet's origins trace back to the 2016 Bitfinex breach, where Ilya Lichtenstein and his wife Heather Morgan stole 120,000 Bitcoin, now worth around $8.2 billion. They were arrested in 2022 and pleaded guilty to money laundering, with sentencing for Lichtenstein set for November.

Prosecutors are recommending lighter sentences for both, citing their cooperation with law enforcement, despite the massive scale of their crime.

A hacker compromised a wallet likely linked to the US government on October 24, draining $20 million, including funds seized from the infamous 2016 Bitfinex hack. According to Arkham Intelligence, the attacker has already converted some of the stolen stablecoins into ETH and is laundering the assets through various addresses.

The wallet's origins trace back to the 2016 Bitfinex breach, where Ilya Lichtenstein and his wife Heather Morgan stole 120,000 Bitcoin, now worth around $8.2 billion. They were arrested in 2022 and pleaded guilty to money laundering, with sentencing for Lichtenstein set for November.

Prosecutors are recommending lighter sentences for both, citing their cooperation with law enforcement, despite the massive scale of their crime.