A U.S. government-controlled crypto wallet that was drained of approximately $19.3 million returned most of its holdings shortly after the theft. Blockchain analysts flagged the transaction as suspicious, and the funds were traced back, including a mix of Ethereum and the stablecoin USDC. Despite returning a significant amount, about $1.2 million still remains missing. The wallet was previously associated with a seizure by the U.S. Department of Justice linked to the infamous 2016 Bitfinex hack. After receiving funds, the wallet was observed transferring large sums to another wallet. The initial withdrawals raised eyebrows, especially concerning the use of decentralized finance protocols and exchanges that can offer less security. Additionally, the involvement of nested exchanges has been criticized as these can be utilized by cybercriminals. As of now, authorities have not disclosed further details or next steps regarding this incident.

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