A wallet linked to the U.S. government has recovered $19.3 million from a $20 million hack reported earlier this week, according to blockchain analytics firm Arkham. The recovered amount represents 88% of the stolen funds and was retrieved within 24 hours of the incident.
Details of the Hack
The breach, which occurred on October 24, involved over $20 million in various cryptocurrencies, including:
- $14 million in AUSDC stablecoin
- $5.4 million in USDC
- $1.1 million in USDT
- $500,000 in ETH
The wallet containing these assets had not seen any movement in over eight months prior to the security breach. It is believed that the perpetrator transferred the stolen funds to non-custodial applications, indicating an attempt to launder the assets.
Blockchain analysts Arkham and crypto investigator ZachXBT noted that the transactions exhibited signs of malicious activity.
Connection to the 2016 Bitfinex Hack
The stolen assets were linked to government-seized funds from the 2016 Bitfinex hack, in which the exchange lost nearly 120,000 BTC. This historical breach has remained one of the most infamous incidents in crypto history, with the U.S. government having seized and recovered some of the stolen funds in the years since.
Swift Recovery
The government’s rapid recovery of 88% of the stolen funds signals heightened security efforts and monitoring of seized assets. The precise method used to reclaim the funds remains undisclosed, but this incident highlights the challenges of preventing and tracing crypto theft.
With government wallets increasingly active in managing seized cryptocurrencies, the recovery serves as a reminder that crypto transactions, though pseudonymous, are traceable, and even complex laundering attempts can be foiled.
Further updates from the U.S. government and Arkham are expected as the investigation continues.
