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ARTICLE · 21 NOVEMBER 2024

Bit By Bitfinex Hack, Account Holders Will Have Their Day

Davis+Gilbert LLP
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To be a victim or creditor, that is the question. Whether ‘tis better to remain silent and suffer the outrageous fortune of a hacked exchange receiving $6 billion in restitution as the alleged sole victim of the hack...

United StatesCriminal Law
Joseph Cioffi
Joseph Cioffi
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To be a victim or creditor, that is the question. Whether 'tis better to remain silent and suffer the outrageous fortune of a hacked exchange receiving $6 billion in restitution as the alleged sole victim of the hack, or take arms against that sea of trouble and by opposing end the exchange's bid for a windfall?

Just as Marcellus of Hamlet knew there was something rotten in the state of Denmark, Bitfinex account holders knew something just wasn't right about letting the hackers and the government reach a deal that left account holders out in the cold. Now a federal court in Washington D.C. has agreed account holders deserve to be heard.

First, a Steal and then, a Deal

The 2016 hack of Bitfinex has been well-reported. Defendants, Ilya Lichtenstein and Heather Morgan, stole approximately 120,000 Bitcoin, representing 36.06% of the value of user accounts on the exchange, and engaged in a sophisticated and complex scheme to launder the stolen property.

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