Verify a decision

{"actor":"system:backfill","investigation_id":"4e0e233b-e658-400e-b877-a6407db67780","kind":"publish","page_slug":"bitfinex","published_at":"2026-09-27T12:06:02.078Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Bitfinex","sections":[{"content":"On August 2, 2016, Bitfinex disclosed a security breach in which attackers exploited its multi-signature wallet system (implemented with BitGo) to steal approximately 119,756 bitcoin, worth about $71.8 million at the time. In response, Bitfinex socialized the loss across all customer accounts, reducing every user's balance by roughly 36% and issuing 'BFX' debt tokens as IOUs redeemable at $1 each. Bitfinex fully redeemed all outstanding BFX tokens within about eight months, by April 2017, either in cash or by converting them into shares of parent company iFinex Inc. Holders who converted BFX into equity also received 'Recovery Right Tokens' (RRT) entitling them to a share of any future recovery of the stolen funds.","heading":"2016 Security Breach and Loss of Customer Funds","severity":"high","sources":[{"credibility":2,"name":"2016 Bitfinex hack — Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/2016_Bitfinex_hack"},{"credibility":2,"name":"Bitcoin Exchange Bitfinex Buys Back All Remaining 'Hack Credit' Tokens — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2017/04/03/bitcoin-exchange-bitfinex-buys-back-all-remaining-hack-credit-tokens"},{"credibility":2,"name":"2016 Security Breach Bitcoin Recovery FAQ — Bitfinex","type":"official","url":"https://support.bitfinex.com/hc/en-us/articles/4417401349657-2016-Security-Breach-Bitcoin-Recovery-Frequently-Asked-Questions-FAQ"}]},{"content":"In February 2022, US law enforcement seized approximately 94,636 bitcoin (then worth about $3.6 billion) tied to the 2016 Bitfinex theft after decrypting files belonging to Ilya Lichtenstein. Lichtenstein and his wife, Heather Morgan (known online as 'Razzlekhan'), were arrested and charged with conspiracy to launder the stolen funds. In August 2023, Lichtenstein pleaded guilty and admitted to being the original hacker who breached Bitfinex; Morgan pleaded guilty to related money-laundering and fraud conspiracy charges. In November 2024, Lichtenstein was sentenced to five years in federal prison and Morgan to 18 months. Lichtenstein was reportedly released early in around January 2026, which he attributed to a law signed under the Trump administration; Morgan's father indicated her sentence had concluded as well, according to press reporting. In January 2025, prosecutors asked a federal court to authorize an in-kind restitution transfer of roughly 94,643 recovered bitcoin (valued near $9.3 billion at that time) to Bitfinex; a subsequent court ruling found that Bitfinex and its users did not strictly qualify as 'victims' under the Mandatory Victims Restitution Act, but the presiding judge permitted restitution to proceed via the defendants' plea agreements. A remaining roughly 25,000 bitcoin, laundered through mixers, peel chains and non-compliant exchanges, is subject to a separate ancillary forfeiture proceeding and has not been straightforwardly returned.","heading":"Recovery of Stolen Funds and the Lichtenstein/Morgan Case","severity":"high","sources":[{"credibility":2,"name":"US Officials Seize $3.6B in Bitcoin From 2016 Bitfinex Hack — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2022/02/08/us-officials-seize-bitcoin-from-2016-bitfinex-hack"},{"credibility":2,"name":"Bitfinex Hack Money Launderers Plead Guilty — Chainalysis","type":"research","url":"https://www.chainalysis.com/blog/bitfinex-hack-plea-july-2023/"},{"credibility":1,"name":"Major bitcoin hacker Lichtenstein gets five years in prison for crypto laundering scheme — CNBC","type":"news_article","url":"https://www.cnbc.com/2024/11/14/bitfinex-hacker-sentenced-to-five-years-in-prison-for-bitcoin-money-laundering-scheme.html"},{"credibility":1,"name":"Bitfinex bitcoin thief Ilya Lichtenstein thanks Trump for early prison release — CNBC","type":"news_article","url":"https://www.cnbc.com/2026/01/02/bitcoin-hacker-ilya-lichtenstein-bitfinex-razzlekhan.html"},{"credibility":1,"name":"U.S. Prosecutors Ask Court to Green-Light Return of 95,000 Stolen Bitcoin to Bitfinex — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2025/01/15/u-s-prosecutors-ask-court-to-green-light-return-of-95-000-stolen-bitcoin-to-bitfinex"},{"credibility":2,"name":"US government says stolen bitcoin from 2016 Bitfinex hack should be returned to the exchange 'in-kind' — The Block","type":"news_article","url":"https://www.theblock.co/news/markets/2025-01-15-us-government-says-stolen-bitcoin-from-2016-bitfinex-hack-should-be-returned-to-the-exchange-in-kind-334791"}]},{"content":"Beginning around 2014 and expanding after Bitfinex lost correspondent banking access via Wells Fargo in 2017, Bitfinex relied on Panama-based payment processor Crypto Capital Corp for banking services, allegedly transferring over $1 billion in commingled customer and corporate funds without a formal contract. Crypto Capital, whose principals reportedly included Reginald Fowler (a former part-owner of the Minnesota Vikings) and Ravid/Oz Yosef, allegedly had funds seized by multiple governments and stopped honoring Bitfinex withdrawal requests, leaving Bitfinex allegedly unable to service customer withdrawals. According to the New York Attorney General, Bitfinex covered the resulting roughly $850 million shortfall using funds transferred from Tether's reserves, which the NY AG alleged left Tether's stablecoin no longer fully backed by dollars as of around November 2018.","heading":"Crypto Capital Corp and Alleged Commingling of Funds","severity":"high","sources":[{"credibility":2,"name":"What is Crypto Capital Corp? — Bennett Tomlin","type":"research","url":"https://bennettftomlin.com/2021/02/20/what-is-crypto-capital-corp/"},{"credibility":1,"name":"Attorney General James Ends Virtual Currency Trading Platform Bitfinex's Illegal Activities in New York — NY AG","type":"regulatory","url":"https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal"},{"credibility":2,"name":"The rise and fall of Crypto Capital Corp, crypto's premiere shadow bank — Protos","type":"news_article","url":"https://protos.com/crypto-capital-corp-reginald-fowler-yosef-shadow-bank-history/"}]},{"content":"Following a roughly 22-month investigation opened in April 2019, the New York Attorney General announced on February 23, 2021 a settlement in which Bitfinex and Tether agreed to pay $18.5 million in penalties and to cease trading with New York residents and entities. The NY AG alleged that Bitfinex and Tether 'recklessly and unlawfully covered up' the loss of approximately $850 million in customer and corporate funds and that Tether was not fully backed by US dollars at points in 2018. Bitfinex and Tether admitted no wrongdoing as part of the settlement and agreed to submit quarterly transparency reports on Tether's reserves for two years.","heading":"New York Attorney General Settlement (2021)","severity":"high","sources":[{"credibility":1,"name":"NY AG's $850M Probe of Bitfinex, Tether Ends in an $18.5M Settlement — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2021/02/23/ny-ags-850m-probe-of-bitfinex-tether-ends-in-an-185m-settlement"},{"credibility":1,"name":"Attorney General James Ends Virtual Currency Trading Platform Bitfinex's Illegal Activities in New York — NY AG","type":"regulatory","url":"https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal"},{"credibility":1,"name":"Tether, Bitfinex reach settlement with New York attorney general — CNBC","type":"news_article","url":"https://www.cnbc.com/2021/02/23/tether-bitfinex-reach-settlement-with-new-york-attorney-general.html"}]},{"content":"The US Commodity Futures Trading Commission has twice taken enforcement action against Bitfinex. On June 2, 2016, the CFTC ordered Bitfinex (operating as BFXNA Inc.) to pay a $75,000 civil penalty for offering illegal off-exchange financed retail commodity transactions and for failing to register as a futures commission merchant, finding that Bitfinex retained control of customers' bitcoin private keys rather than delivering the actual commodity. Separately, on October 15, 2021, the CFTC ordered Tether and Bitfinex to pay combined penalties of $42.5 million, finding that Tether had made untrue or misleading statements about USDT's dollar backing and that Bitfinex had engaged in illegal, off-exchange commodity transactions and had concealed its relationship with Tether. Neither settlement required an admission of the findings.","heading":"CFTC Enforcement Actions","severity":"high","sources":[{"credibility":1,"name":"CFTC Fines Bitfinex For Failing To Register and Operating An Illegal Exchange — CFTC","type":"regulatory","url":"https://www.cftc.gov/PressRoom/PressReleases/7380-16"},{"credibility":1,"name":"CFTC Orders Tether and Bitfinex to Pay Fines Totaling $42.5 Million — CFTC","type":"regulatory","url":"https://www.cftc.gov/PressRoom/PressReleases/8450-21"}]},{"content":"Bitfinex and Tether are defendants in a consolidated federal class action in the Southern District of New York (In re Tether and Bitfinex Crypto Asset Litigation) alleging that the companies artificially inflated cryptocurrency prices by issuing 'hundreds of millions of unbacked or debased' USDT tokens while falsely representing full dollar backing, and using the resulting stablecoins in cross-exchange arbitrage trading to manipulate crypto asset prices. On March 6, 2025, presiding judge Katherine Polk Failla granted class certification with modifications, accepting plaintiffs' damages/regression model while excluding their event-study methodology and reserving the ultimate question of causation for summary judgment. Tether and Bitfinex have sought Second Circuit review of the certification decision. This litigation remains unresolved and the underlying manipulation allegations are unproven.","heading":"Market Manipulation Class Action (Ongoing)","severity":"high","sources":[{"credibility":2,"name":"New York Federal Court Certifies Crypto Class Action With Modifications — Duane Morris Class Action Defense Blog","type":"news_article","url":"https://blogs.duanemorris.com/classactiondefense/2026/03/10/new-york-federal-court-certifies-crypto-class-action-with-modifications-and-reserves-causation-question-for-summary-judgment-proceedings/"},{"credibility":2,"name":"Tether, Bitfinex Appeal Class Cert. In Bitcoin Rigging Suit — Law360","type":"news_article","url":"https://www.law360.com/articles/2451874/tether-bitfinex-appeal-class-cert-in-bitcoin-rigging-suit"},{"credibility":1,"name":"In re Tether and Bitfinex Crypto Asset Litigation — Law360","type":"court_filing","url":"https://www.law360.com/cases/5d9b0d4016d8ff0086045072/articles"}]},{"content":"In July 2026, US federal prosecutors froze approximately $84.2 million in assets tied to Capstone Ltd, a Montana-registered entity, alleging it operated as an unlicensed money transmitter while presenting itself as an IT services company. According to reporting citing the Financial Times, Tether and Bitfinex are alleged to be the crypto firms operating behind Capstone, though neither company has been formally named as a defendant in the forfeiture complaint. Capstone's Wells Fargo account reportedly disbursed $337 million between March and December 2025, with roughly two-thirds sent to recipients mostly outside the US; the case is also alleged to connect to a scheme in which fraudsters impersonating FBI agents pressured elderly victims into payments later converted to USDT. On July 16, 2026, US District Judge Dale A. Drozd rejected a bid by EQIBank, a Dominica-licensed digital bank, to recover its frozen assets. Both Tether and Bitfinex have denied knowledge of any underlying misconduct. This matter is unresolved, and Bitfinex's precise role, if any, is alleged rather than established.","heading":"2026 Capstone Ltd Asset Freeze (Alleged Affiliate)","severity":"critical","sources":[{"credibility":2,"name":"Tether Bitfinex Asset Freeze Case Unfolds in US Forfeiture — Cryptonomist","type":"news_article","url":"https://en.cryptonomist.ch/2026/09/25/tether-bitfinex-asset-freeze/"}]},{"content":"Bitfinex is operated by iFinex Inc. and has historically been incorporated in the British Virgin Islands with operational ties to Hong Kong. In recent years the group has built out a regulated presence in El Salvador: Bitfinex Securities was approved under El Salvador's Digital Assets Issuance Law in April 2023, Bitfinex Derivatives obtained a Digital Asset Service Provider (DASP) license in January 2025, and the core Bitfinex spot exchange completed its DASP licensing in El Salvador in May 2026, mirroring a similar relocation by affiliated stablecoin issuer Tether, which moved its headquarters to El Salvador around January 2025. Bitfinex does not hold licenses from major Tier-1 regulators such as the US SEC/CFTC (as a registered exchange), the UK FCA, or comparable EU authorities, and it remains restricted or unavailable to US retail customers in most cases.","heading":"Current Licensing and Corporate Structure","severity":"medium","sources":[{"credibility":2,"name":"Bitfinex Secures Licence and Completes Its Regulated Footprint in El Salvador — Bitfinex Blog","type":"official","url":"https://blog.bitfinex.com/announcements/bitfinex-secures-licence-in-el-salvador/"},{"credibility":2,"name":"Bitfinex completes El Salvador licence set across three markets — crypto.news","type":"news_article","url":"https://crypto.news/bitfinex-completes-el-salvador-licence-set-across-three-markets/"},{"credibility":2,"name":"Bitfinex Derivatives secures license to operate in El Salvador — Digital Watch Observatory","type":"news_article","url":"https://dig.watch/updates/bitfinex-derivatives-secures-license-to-operate-in-el-salvador"}]},{"content":"Independent crypto exchange reviews in 2026 describe Bitfinex's reputation as mixed: some aggregators give it high scores for liquidity and advanced trading features aimed at professional traders, while other consumer review platforms show markedly poor user satisfaction scores. Reviewers commonly note that Bitfinex lacks licensing from top-tier regulators (e.g., the UK FCA) and cite its history of security breaches and regulatory fines as reasons for caution, generally recommending it primarily to experienced traders rather than casual retail users. These sentiment assessments are drawn from review-site aggregation rather than primary regulatory findings and should be treated as lower-confidence, general-reputation signals.","heading":"User and Reviewer Sentiment","severity":"medium","sources":[{"credibility":3,"name":"Bitfinex Review 2026: The Pro Trader's Exchange, With Pro Trader Risks — Crypto Adventure","type":"other","url":"https://cryptoadventure.com/bitfinex-review-2026-the-pro-traders-exchange-with-pro-trader-risks/"},{"credibility":3,"name":"Bitfinex Review 2026 - Is It Safe and Legit Or a Scam Exchange? — CaptainAltcoin","type":"other","url":"https://captainaltcoin.com/bitfinex-exchange-review/"}]}],"sources_used":[{"credibility":2,"name":"2016 Bitfinex hack — Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/2016_Bitfinex_hack"},{"credibility":2,"name":"Bitfinex — Wikipedia","type":"other","url":"https://en.wikipedia.org/wiki/Bitfinex"},{"credibility":2,"name":"US Officials Seize $3.6B in Bitcoin From 2016 Bitfinex Hack — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2022/02/08/us-officials-seize-bitcoin-from-2016-bitfinex-hack"},{"credibility":2,"name":"Bitcoin Exchange Bitfinex Buys Back All Remaining 'Hack Credit' Tokens — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2017/04/03/bitcoin-exchange-bitfinex-buys-back-all-remaining-hack-credit-tokens"},{"credibility":2,"name":"2016 Security Breach Bitcoin Recovery FAQ — Bitfinex","type":"official","url":"https://support.bitfinex.com/hc/en-us/articles/4417401349657-2016-Security-Breach-Bitcoin-Recovery-Frequently-Asked-Questions-FAQ"},{"credibility":2,"name":"Bitfinex Hack Money Launderers Plead Guilty — Chainalysis","type":"research","url":"https://www.chainalysis.com/blog/bitfinex-hack-plea-july-2023/"},{"credibility":1,"name":"Major bitcoin hacker Lichtenstein gets five years in prison for crypto laundering scheme — CNBC","type":"news_article","url":"https://www.cnbc.com/2024/11/14/bitfinex-hacker-sentenced-to-five-years-in-prison-for-bitcoin-money-laundering-scheme.html"},{"credibility":1,"name":"Bitfinex bitcoin thief Ilya Lichtenstein thanks Trump for early prison release — CNBC","type":"news_article","url":"https://www.cnbc.com/2026/01/02/bitcoin-hacker-ilya-lichtenstein-bitfinex-razzlekhan.html"},{"credibility":1,"name":"U.S. Prosecutors Ask Court to Green-Light Return of 95,000 Stolen Bitcoin to Bitfinex — CoinDesk","type":"news_article","url":"https://www.coindesk.com/policy/2025/01/15/u-s-prosecutors-ask-court-to-green-light-return-of-95-000-stolen-bitcoin-to-bitfinex"},{"credibility":2,"name":"US government says stolen bitcoin from 2016 Bitfinex hack should be returned to the exchange 'in-kind' — The Block","type":"news_article","url":"https://www.theblock.co/news/markets/2025-01-15-us-government-says-stolen-bitcoin-from-2016-bitfinex-hack-should-be-returned-to-the-exchange-in-kind-334791"},{"credibility":2,"name":"What is Crypto Capital Corp? — Bennett Tomlin","type":"research","url":"https://bennettftomlin.com/2021/02/20/what-is-crypto-capital-corp/"},{"credibility":1,"name":"Attorney General James Ends Virtual Currency Trading Platform Bitfinex's Illegal Activities in New York — NY AG","type":"regulatory","url":"https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal"},{"credibility":2,"name":"The rise and fall of Crypto Capital Corp, crypto's premiere shadow bank — Protos","type":"news_article","url":"https://protos.com/crypto-capital-corp-reginald-fowler-yosef-shadow-bank-history/"},{"credibility":1,"name":"NY AG's $850M Probe of Bitfinex, Tether Ends in an $18.5M Settlement — CoinDesk","type":"news_article","url":"https://www.coindesk.com/markets/2021/02/23/ny-ags-850m-probe-of-bitfinex-tether-ends-in-an-185m-settlement"},{"credibility":1,"name":"Tether, Bitfinex reach settlement with New York attorney general — CNBC","type":"news_article","url":"https://www.cnbc.com/2021/02/23/tether-bitfinex-reach-settlement-with-new-york-attorney-general.html"},{"credibility":1,"name":"CFTC Fines Bitfinex For Failing To Register and Operating An Illegal Exchange — CFTC","type":"regulatory","url":"https://www.cftc.gov/PressRoom/PressReleases/7380-16"},{"credibility":1,"name":"CFTC Orders Tether and Bitfinex to Pay Fines Totaling $42.5 Million — CFTC","type":"regulatory","url":"https://www.cftc.gov/PressRoom/PressReleases/8450-21"},{"credibility":2,"name":"New York Federal Court Certifies Crypto Class Action With Modifications — Duane Morris Class Action Defense Blog","type":"news_article","url":"https://blogs.duanemorris.com/classactiondefense/2026/03/10/new-york-federal-court-certifies-crypto-class-action-with-modifications-and-reserves-causation-question-for-summary-judgment-proceedings/"},{"credibility":2,"name":"Tether, Bitfinex Appeal Class Cert. In Bitcoin Rigging Suit — Law360","type":"news_article","url":"https://www.law360.com/articles/2451874/tether-bitfinex-appeal-class-cert-in-bitcoin-rigging-suit"},{"credibility":1,"name":"In re Tether and Bitfinex Crypto Asset Litigation — Law360","type":"court_filing","url":"https://www.law360.com/cases/5d9b0d4016d8ff0086045072/articles"},{"credibility":2,"name":"Tether Bitfinex Asset Freeze Case Unfolds in US Forfeiture — Cryptonomist","type":"news_article","url":"https://en.cryptonomist.ch/2026/09/25/tether-bitfinex-asset-freeze/"},{"credibility":2,"name":"Bitfinex Secures Licence and Completes Its Regulated Footprint in El Salvador — Bitfinex Blog","type":"official","url":"https://blog.bitfinex.com/announcements/bitfinex-secures-licence-in-el-salvador/"},{"credibility":2,"name":"Bitfinex completes El Salvador licence set across three markets — crypto.news","type":"news_article","url":"https://crypto.news/bitfinex-completes-el-salvador-licence-set-across-three-markets/"},{"credibility":2,"name":"Bitfinex Derivatives secures license to operate in El Salvador — Digital Watch Observatory","type":"news_article","url":"https://dig.watch/updates/bitfinex-derivatives-secures-license-to-operate-in-el-salvador"},{"credibility":3,"name":"Bitfinex Review 2026: The Pro Trader's Exchange, With Pro Trader Risks — Crypto Adventure","type":"other","url":"https://cryptoadventure.com/bitfinex-review-2026-the-pro-traders-exchange-with-pro-trader-risks/"},{"credibility":3,"name":"Bitfinex Review 2026 - Is It Safe and Legit Or a Scam Exchange? — CaptainAltcoin","type":"other","url":"https://captainaltcoin.com/bitfinex-exchange-review/"}],"summary":"Bitfinex is one of the longest-running cryptocurrency exchanges, operated by iFinex Inc. and closely affiliated with stablecoin issuer Tether. The exchange has a long record of regulatory settlements (CFTC, NY Attorney General), a 2016 hack in which roughly 119,756 bitcoin were stolen, and an alleged commingling of customer funds with the Panama-based payment processor Crypto Capital Corp that led to a cover-up settlement. As of 2026, Bitfinex continues to operate and has obtained licenses in El Salvador, but it remains the subject of active US litigation, including a certified securities-fraud class action alleging market manipulation via Tether, and a federal asset-forfeiture case involving an affiliated payments entity, Capstone Ltd.","timeline":[{"date":"2016-08-02","date_evidence":"Bitfinex was hacked on August 2, 2016, with hackers ... making away with a total of 119,756 Bitcoin","event":"Bitfinex discloses a security breach; approximately 119,756 bitcoin (~$71.8 million at the time) stolen from customer wallets.","source":"Decrypt / Wikipedia","source_url":"https://en.wikipedia.org/wiki/2016_Bitfinex_hack"},{"date":"2016-06-02","date_evidence":"On June 2, 2016, the US Commodity Futures Trading Commission (CFTC) issued an order filing and simultaneously settling charges against Hong Kong-based BFXNA, Inc., d/b/a Bitfinex","event":"CFTC fines Bitfinex $75,000 for illegal off-exchange financed retail commodity transactions and registration violations.","source":"CFTC press release","source_url":"https://www.cftc.gov/PressRoom/PressReleases/7380-16"},{"date":"2017-04","event":"Bitfinex completes redemption of all outstanding BFX debt tokens issued after the 2016 hack, at full value.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2017/04/03/bitcoin-exchange-bitfinex-buys-back-all-remaining-hack-credit-tokens"},{"date":"2019-04","event":"New York Attorney General opens investigation into Bitfinex's and Tether's handling of an alleged $850 million shortfall tied to Crypto Capital Corp.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2021/02/23/ny-ags-850m-probe-of-bitfinex-tether-ends-in-an-185m-settlement"},{"date":"2021-02-23","date_evidence":"On February 23, 2021, the Attorney General announced a definitive settlement of the matter.","event":"Bitfinex and Tether settle with the NY Attorney General for $18.5 million, without admitting wrongdoing.","source":"CoinDesk / NY AG","source_url":"https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal"},{"date":"2021-10","date_original":"2021-10-15","event":"CFTC orders Tether and Bitfinex to pay combined penalties of $42.5 million over misleading statements on USDT backing and illegal off-exchange transactions.","source":"CFTC press release","source_url":"https://www.cftc.gov/PressRoom/PressReleases/8450-21"},{"date":"2022-02","event":"US law enforcement seizes approximately 94,636 bitcoin (then ~$3.6 billion) tied to the 2016 hack; Ilya Lichtenstein and Heather Morgan are arrested and charged with money-laundering conspiracy.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2022/02/08/us-officials-seize-bitcoin-from-2016-bitfinex-hack"},{"date":"2023-08","event":"Lichtenstein pleads guilty and admits to being the original hacker behind the 2016 Bitfinex breach; Morgan pleads guilty to related charges.","source":"Chainalysis","source_url":"https://www.chainalysis.com/blog/bitfinex-hack-plea-july-2023/"},{"date":"2024-11","date_evidence":"Major bitcoin hacker Lichtenstein gets five years in prison for crypto laundering scheme","date_original":"2024-11-14","event":"Ilya Lichtenstein sentenced to 5 years in prison; Heather Morgan sentenced to 18 months, for laundering the stolen Bitfinex funds.","source":"CNBC","source_url":"https://www.cnbc.com/2024/11/14/bitfinex-hacker-sentenced-to-five-years-in-prison-for-bitcoin-money-laundering-scheme.html"},{"date":"2025-01","date_evidence":"U.S. Prosecutors Ask Court to Green-Light Return of 95,000 Stolen Bitcoin to Bitfinex","date_original":"2025-01-15","event":"Prosecutors ask federal court to approve in-kind restitution of ~94,643 recovered bitcoin (~$9.3B) to Bitfinex.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2025/01/15/u-s-prosecutors-ask-court-to-green-light-return-of-95-000-stolen-bitcoin-to-bitfinex"},{"date":"2025-01","event":"Bitfinex Derivatives obtains a DASP license in El Salvador.","source":"Digital Watch Observatory","source_url":"https://dig.watch/updates/bitfinex-derivatives-secures-license-to-operate-in-el-salvador"},{"date":"2025-03-06","date_evidence":"On March 6, 2025, Judge Katherine Polk Failla granted class certification with significant modifications.","event":"Federal judge grants (modified) class certification in the consolidated Tether/Bitfinex market-manipulation class action.","source":"Duane Morris Class Action Defense Blog","source_url":"https://blogs.duanemorris.com/classactiondefense/2026/03/10/new-york-federal-court-certifies-crypto-class-action-with-modifications-and-reserves-causation-question-for-summary-judgment-proceedings/"},{"date":"2026-01","event":"Ilya Lichtenstein reportedly released early from federal prison.","source":"CNBC","source_url":"https://www.cnbc.com/2026/01/02/bitcoin-hacker-ilya-lichtenstein-bitfinex-razzlekhan.html"},{"date":"2026-05-12","date_evidence":"Bitfinex received a Digital Asset Service Provider (\"DASP\") licence in El Salvador on May 12, 2026.","event":"Bitfinex's core spot exchange completes its DASP licensing set in El Salvador.","source":"Cryptonomist","source_url":"https://en.cryptonomist.ch/2026/05/12/bitfinex-el-salvador-licence-expands/"},{"date":"2026-07","event":"US federal prosecutors freeze ~$84.2 million tied to Capstone Ltd, alleging unlicensed money transmission; Tether and Bitfinex are alleged to operate behind the entity.","source":"Cryptonomist","source_url":"https://en.cryptonomist.ch/2026/09/25/tether-bitfinex-asset-freeze/"},{"date":"2026-07-16","date_evidence":"On July 16, Judge Dale A. Drozd rejected EQIBank's ... attempt to recover frozen assets.","event":"Judge Dale A. Drozd rejects EQIBank's bid to recover assets frozen in the Capstone Ltd forfeiture case.","source":"Cryptonomist","source_url":"https://en.cryptonomist.ch/2026/09/25/tether-bitfinex-asset-freeze/"}]},"v":1}