$100M of Bitfinex’s Stolen Bitcoin Is in Transit
Hackers responsible for a 2016 Bitfinex theft moved close to $100 million of Bitcoin today after crypto prices reached an all-time high.
Nearly $100 Million Moved
The hackers responsible for this transfer stole a total of 120,000 BTC from Bitfinex in August 2016. At the time, the British Virgin Island-based exchange lost $72 million in the hack.
At 2 pm ET on Nov. 30, the hackers moved 5018.48 BTC (4.1% of the original theft) in a series of transactions. The value of those funds is about $100 million at Bitcoin’s current price.
The transfer was carried out over fourteen transactions of less than 500 BTC each, according to data analytics website Whale Alert. It is not clear where the funds were sent, but the movement was likely part of an attempt to cash out the stolen coins.
Stolen Bitcoin Incites Sell-off Fears
The stolen funds have been moving frequently. One movement took place just weeks ago: on Oct. 07, the hackers moved close to 2500 BTC in a similar fashion. Before that, the US government recovered a small portion of the stolen funds (28 BTC) in February 2019.
The movement of stolen funds may raise fears of a market crash among investors. Fortunately, Bitcoin’s liquidity has grown since last year, which mitigates the impact of the theft. Today, 5000 BTC would add only 11% to the average exchange inflows of 45,000 BTC.
Therefore, markets can expect buyers to absorb this event quickly as well. Nevertheless, the hackers still hold a significant portion of Bitcoin’s supply. If the stolen funds are moved in larger amounts, that could cause short-term corrections in Bitcoin’s price.