bitfinex hack  million bitcoin moved
Source: Pixabay

Bitfinex Hack Continues — $5.6 Million Bitcoin Moved

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Aug. 19 2020, Updated 9:06 a.m. ET

The bitcoins stolen in the Bitfinex hack continue to move around. In the latest transfer, more than $5.6 million worth of bitcoin or about 467 pieces of the cryptocurrency taken in the Bitfinex hack moved to an unknown wallet. The Bitfinex hackers are thought to be transferring the bitcoins to platforms where they can easily cash them out. There have been several transfers of the hacked bitcoins since the incident took place.

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What was the Bitfinex hack?

Bitfinex is a cryptocurrency exchange operated by a company called iFinex. The Bitfinex hack happened in August 2016. The breach swept away 120,000 bitcoins from the crypto exchange. The hack caused Bitfinex to pause trading on its platform for some time. 

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When the incident happened, the total value of bitcoins stolen in the Bitfinex hack was $72 million. However, the bitcoin price has soared in the last four years. Therefore, the 120,000 bitcoins drained in the Bitfinex hack are worth more than $1.4 billion today.

bitfinex hack  million bitcoin moved
Source: istock
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Bitfinex partially compensated customers impacted by the hack in 2016. The exchange gave impacted customers BFX tokens as compensation. Bitfinex bought back the tokens from the holders and paid them in U.S. dollars. 

Bitfinex is still trying to recover the bitcoins that were stolen in the 2016 hacking incident. The exchange has offered a $400 million reward to the hackers to return the bitcoins they took from its platform. The reward offered in the recovery effort is about 30 percent of the value of the stolen bitcoins. Bitfinex will also reward anyone who connects it with the hackers. The exchange wants to negotiate the return of the stolen bitcoins. 

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What is bitcoin's price today?

So far, bitcoin's price has soared in 2020. The economic shock amid the COVID-19 pandemic has driven investors to assets deemed less-exposed to the traditional financial system. Today, bitcoin's price was $11,861.99 at 7:22 a.m. ET, which gives it a valuation of $219 billion. At some point in 2017, bitcoin's price soared to almost $20,000. The current price shows bitcoin trading about 40 percent below its peak price.

bitcoin price
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What is the best crypto exchange?

Bitfinex is one of the many cryptocurrency exchanges you could use to buy and sell bitcoin and a range of other crypto assets. With many hacking incidents and stolen crypto assets, safety and security are a top priority for anyone looking for a cryptocurrency exchange. 

Today, there are hundreds of crypto exchanges. Investors will have different opinions about which crypto exchange is the best. However, it helps to consider factors like platform reputation, security, and fees when choosing a crypto exchange. Regarding security, you should find out if an exchange has insurance to compensate users if something goes wrong and people lose their funds.

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Losses due to crypto crimes, like exchange hacks, have been rising. The losses more than doubled to $4.5 billion in 2019, which highlights the importance of operating on a secure crypto exchange.

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What is blockchain technology?

Blockchain is a public ledger for recording transactions and tracking assets or items in a transparent manner. For example, Walmart uses blockchain technology to trace the origin of fresh farm produce sold in its stores and enhance food safety. Blockchain records are nearly impossible to forge. Blockchain technology underpins cryptocurrencies like bitcoin. 

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