US government-linked address likely exploited for over $20 million in crypto US government-linked address likely exploited for over $20 million in crypto
The US-government controlled wallet held significant amounts of seized crypto linked to the Bitfinex hack in 2016.
1 min read
Updated: Oct. 24, 2024 at 11:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
A hacker may have stolen over $20 million worth of crypto, including stablecoins and Ethereum (ETH), from a US government-controlled wallet connected to the infamous 2016 Bitfinex hack.
The suspicious transfers occurred on Oct. 24, raising alarms among blockchain analysts, including ZachXBT, who called the transfers “nefarious” and hinted at possible theft.
Arkham Intelligence first flagged the transfers from the wallet, which had been dormant for eight months before it suddenly moved $1.25 million in Tether (USDT) and $5.5 million in USD Coin (USDC) from the DeFi platform Aave.
Additionally, around $13.7 million in aUSDC — an interest-bearing token representing USDC deposited in Aave — along with $446,000 worth of Ethereum, was sent to a recently created wallet.
The funds had been seized by US authorities as part of the investigation into the 2016 Bitfinex hack, in which over $3.6 billion in digital assets were stolen. Following the seizure, the government-held wallet had received significant amounts of crypto.
Further analysis revealed that approximately $320,000 worth of Ethereum was sent to various exchanges, while another $80,000 was distributed across multiple smaller wallets. The wallet that received these funds had been created only days before the transfer, intensifying concerns about the suspicious nature of the transactions.
As of press time, the Department of Justice has not commented on the situation or provided information regarding the transfers. Analysts and blockchain experts are continuing to monitor the movement of the funds as the investigation unfolds.
Mentioned in this article
Author 
Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
USD Coin
$1.00015
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Tether
$0.99964
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Avara
Avara is a software technology company that specializes in building innovative web3 products based on blockchain technologies.
Bitfinex
Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
ZachXBT is an independent on-chain sleuth who is popular on revealing bad actors in the crypto space.
