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Funds Stolen During Bitfinex Hack on the Move for First Time in Years


An e-wallet containing cryptocurrency funds related to the 2016 Bitfinex hack has observed the digital coins being moved for the first time in several years. The exchange took place at a tough time for Bitfinex, as the exchange is currently plagued by suspicions of substantial losses and being held afloat only by credit being provided by Tether.

As outlined by the transaction record, approximately 300 BTC were transferred in a number of transactions on April 25th. The total value of these transactions was around $1.59 million, based upon current rates. The amount is only a small portion of the entire total stolen during hack, which resulted in over 744,000 Bitcoin being taken.

The e-wallet address action was observed and reported by a user on Reddit, based upon lists of wallets that quite possibly were linked to the hack. Furthermore, traders spotted a trading anomaly, with Bitcoin temporarily being sold off on Kraken.

Dan McArdle, Co-founder of Messari and creator of OnChainFX tweeted the following:

The aforementioned Reddit thread can be found here: Bitcoins from the Bitfinex Hack 2016 moved today

Bitfinex currently handles greater than 22% of all Bitcoin activity, based on current CryptoCompare records. The significance of the exchange in the cryptocurrency environment means that it is closely observed for any type of warning signs.

It is not yet known if the sale has any direct relation to the liquidation of the funds that were stolen. What is more concerning is the fact that the money was transferred just as Bitfinex is heading into a legal battle brought on by the New York Attorney General. Investigations of the allegation highlight the fact that Bitfinex could have lost a substantial amount of funds as a result of ties to Crypto Capital, which served as a payment service provider over the past few months. Bitfinex has denied any claims that the money was lost, proclaiming that a number of accounts might be temporarily locked.

The unfavorable reports surrounding Bitfinex also pushed Bitcoin prices lower today, falling to $5,291.84 as selling carried on. The loss of confidence in Bitfinex resulted in Tether feeling the impact, falling to $0.97 on Kraken.

Across the markets, USDT is experiencing a minor loss of trust, as rates dropped towards $0.98. Concurrently, other stablecoins, such as DAI, improved their price marginally above the dollar level.



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