A hack, which started as the theft of $20.7M in Ethereum (ETH), USDC, aUSDC, and USDT, has now seen $19.3M of the stolen crypto recovered, meaning that $1.4M plus remains in the hands of the hackers. In a twist of events that nobody saw coming, hackers who only recently launched a major cyber attack targeting a wallet affiliated with the US government have now returned a significant chunk of the stolen money.
The Heist: $20.7M Stolen from Seized Ethereum, USDT & More
The cyberattack happened on the 25th of October 2024 on a wallet affiliated with the US government, which involved assets acquired from the Bitfinex hackers. The stolen funds were traced to nine US government addresses previously used to recover crypto assets associated with different cybercriminal activities. Cryptocurrency tracking reveals that the attackers moved a total of $20.7M with approximately 177.89 Ethereum worth $446K, 13.69M aUSDC, 5.44M USDC, and 1.125M USDT.
To cover their tracks, hackers soon rerouted the funds through several transactions. Some stolen ETH was sent to Binance deposit wallets, provoking doubts about using the stolen money for laundering.
Prompt Response: Hackers Return $19.3M
Within 24 hours of the event, blockchain tracking systems began to record a surprising turn of events in the story. A significant portion of the stolen assets was recovered in government-linked wallets in the US. Analyzing transactions through the Arkham Intelligence and Lookonchain platforms, it was noted that several transactions sent back aUSDC, USDC, and minor amounts of ETH and other tokens. According to the analysts, $19.3M of the stolen money was recovered, constituting almost 93% of the stolen money.
A Partial Loss: $1.4M Still Missing
However, most of the stolen money was recovered, and some $1.4M still cannot be accounted for. This missing sum is primarily Ethereum and small amounts of other cryptocurrencies that have yet to be returned. Industry insiders still expect the hackers to try to withdraw or transfer the rest of the funds in micropayments to avoid getting caught.
Investigation and Response
There is no official statement from the U.S. government regarding the return of funds; however, blockchain intelligence companies are observing the related wallets. Whether hackers were forced to commit the act or independently resolved to refund the amount is still ambiguous.
Though getting back $19.3 million is a good sign, the hack underlines numerous risks to government-owned crypto assets.
This partial resolution raises questions about the long-term safety of such an asset and the risks associated with storing it on the blockchain. The additional information may be unveiled in the following weeks as the investigation is still ongoing.
