Bitfinex Hacker of 120,000 Bitcoin Sentenced to 5 Years in Prison

[Accardo]

Indeed the punishment is light regarding the hacker's harm to investors and traders. But, it's better to be jailed than not. So as to relieve the grieve of the affected people. However, his solicitor may have helped in breaking the term down to 5 years. Added to the recovered Bitcoin.

Coincidentally, it's as if the government's interest rose the moment the value of Bitcoin increased which made the hacker a billionaire. Hopefully, they'll sell the coins on auction or hold it for their benefits.

[freedomgo]

Indeed the punishment is light regarding the hacker's harm to investors and traders. But, it's better to be jailed than not. So as to relieve the grieve of the affected people. However, his solicitor may have helped in breaking the term down to 5 years. Added to the recovered Bitcoin.

The hacked Bitcoins belonged to the exchange and its users. However, the exchange took action afterward by compensating the affected users with a BFX token.

https://support.bitfinex.com/hc/en-us/articles/4417401349657-2016-Security-Breach-Bitcoin-Recovery-Frequently-Asked-Questions-FAQ

On August 2, 2016, Bitfinex suffered a security breach where 119,755 BTC were stolen. To compensate customers for resulting losses, Bitfinex credited BFX tokens to customers at a ratio of 1 BFX to 1 US dollar lost. Bitfinex honoured its commitment to repay the losses. Within eight months of the security breach, all BFX token holders had their tokens redeemed at 100 cents on the US dollar or exchanged their tokens for shares of the capital stock of iFinex Inc.

All BFX tokens were destroyed as a part of the repayment process. Additionally, Bitfinex created a tradable RRT for certain BFX holders that converted BFX tokens into shares of iFinex.

Coincidentally, it's as if the government's interest rose the moment the value of Bitcoin increased which made the hacker a billionaire. Hopefully, they'll sell the coins on auction or hold it for their benefits.

This delay in returning the funds actually worked out in Bitfinex's favor since the value of the Bitcoin during the hack was under $100 million, but now it's worth billions. The government can’t claim ownership because it’s clear from the start that it was Bitfinex’s Bitcoin that was hacked. It just needs to go through some legal processes before Bitfinex can reclaim it. Now that the hackers have been sentenced, I think they’re close to getting it back -- whether in Bitcoin or fiat, depending on the authorities’ decision.

[stadus]

Hopefully, they'll sell the coins on auction or hold it for their benefits.

They can sell it at auction, but they can’t keep what they don’t own. Unless it’s proven that the hacked coins were used for illegal activities, like money laundering, those Bitcoins (now worth billions) would go to the government treasury. If that happens, they could even become part of the USA’s Bitcoin holdings.

[Botnake]

Hopefully, they'll sell the coins on auction or hold it for their benefits.

They can sell it at auction, but they can’t keep what they don’t own. Unless it’s proven that the hacked coins were used for illegal activities, like money laundering, those Bitcoins (now worth billions) would go to the government treasury. If that happens, they could even become part of the USA’s Bitcoin holdings.

Exactly, because this isn't confiscated money from illegal operations, it's legitimate funds from an exchange that was hacked. The government has a responsibility to return it, as long as all the required documents are properly submitted by both Bitfinex and the regulators or authorities. Cases like these often take years to resolve, just like the Mt. Gox hack, which still hasn’t fully refunded traders even after all this time.

[BitcSeo]

It’s crazy how much Bitcoin they managed to hack, but we know when the government gets involved, it’s tough to escape. Still, the sentence of just 5 years in prison seems pretty light. If that’s the case, some might see it as worth the risk, imagine hacking $100 million and spending only 5 years in jail. That’s like earning $20 million a year behind bars! 

It was actually supposed to be 20 years but the one who stole all these bitcoin seems to be a genius and has promised to help authorities with crybercrime. He has helped the government in some of criminal cases since he was caught. The prosecutors hope to help him get to a rehabilitation and instead use his skills for the better. There are many geniuses out there but unfortunately, they decide to use it for things like this.

I do not know what the government is thinking though. I would be uneasy to let a convicted criminal run my criminal cases just because he is good. For all we know, he can just fool the authorities and suddenly escape. But then again, if he were smart enough, he will see that 5 years serving time is a lot better than a life where you need to keep hiding and running away. Risky move from the government but if it meant that they now have a very skilled individual helping them then I guess it pays off.

"................... The prosecutors hope to help him get to a rehabilitation and instead use his skills for the better. There are many geniuses out there but unfortunately, they decide to use it for things like this.

I do not know what the government is thinking though. I would be uneasy to let a convicted criminal run my criminal cases just because he is good. For all we know, he can just fool the authorities and suddenly escape.............."


I wanted to point out this but, you are smart to voice it out.
Repentant terrorist to become a doctor!

Oneday, they will decide to use such skills against an average/modest traders.


Regards
Bitcseo

[BitCoinSeo]

As a user who held crypto on bitfinex at the time I didn't see any value in their tokens being offered.  Also there were reports  of an inside job.  I would just like the % of my lost crypto back. 

Is there a reason why no class action lawsuit has not happened?

As the previous poster stated, the coins belonged to the users.