A U.S. government-controlled crypto wallet that had been drained of approximately $20 million had most of its funds returned less than a day later. The theft was linked to the hack of the Bitfinex exchange in 2016. Early Friday, blockchain analyst ZachXBT reported that $19.3 million in Ethereum and stablecoins like USDC had been sent back, although around $1.2 million remained missing. Initially, the wallet transferred significant amounts through decentralized finance (DeFi) protocols, raising alarms in the crypto community. The money was traced to instant exchanges, emphasizing potential security risks associated with nested exchanges, which cybercriminals often exploit. The mysterious involvement of a known hacker and the quick return of funds have left many questions unanswered regarding the motivations behind this event and overall implications for crypto security measures.

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