- A crypto wallet tied to the US government is the latest victim in a hack.
- The exploiter is wasting no time to shuffle their loot.
- The stolen funds are linked to the infamous Bitfinex hack.
Hacks and scams are the darker side of the crypto world, where threat actors constantly lurk in the shadows, waiting to snatch their next big loot. These malicious actors are constantly refining their tactics to exploit vulnerabilities within the system, whether through phishing schemes, ransomware attacks, or outright theft.
In their latest chapter, these industry wrongdoers may have just executed their most audacious heist yet.
US Govt Crypto Wallet Left Unlocked, Hackers Cash In
A crypto wallet holding funds that are likely to belong to the United States government has suffered a hack. In an October 24 post, blockchain intelligence platform Arkham Intelligence highlighted unusual activity involving several assets.
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According to Arkham, approximately $20 million worth of assets, including USDC, USDT, USD, and ETH, was mysteriously transferred from the wallet tied to the US government to another controlled by the attacker.
The alarm followed a previous alert that the same wallet had shifted around $5.4 million, marking the first activity on the wallet in over eight months. An additional $1.12 million transfer followed the transaction, occurring within a brief period.
After the unauthorized transfers, the hacker quickly shuffled their ill-gotten gains, selling off the assets and laundering the proceeds through various addresses linked to money laundering services.
The hackerโs address holds around $13.19 million AUSDC in balance at the time of this writing. But how did these funds land in a U.S. government-linked wallet in the first place?
Stolen U.S. Govt Crypto Tied to Bitfinex Hack
The majority of the U.S. governmentโs crypto assets come from seizures, and this case is no exception. Arkham Intelligence reported that the stolen $20 million links back to the governmentโs confiscation from the notorious 2016 Bitfinex hack.
Analysis revealed that the exploiterโs address received transfers from nine separate seizure wallets owned by the government, including one explicitly mentioned in official court documents related to the investigation.
Authorities apprehended the Bitfinex hackโs original perpetrators, Ilya Lichtenstein and Heather Morgan, in 2022, leading to the confiscation of their illicit holdings.
With the duoโs sentencing on fraud and money laundering charges approaching in November 2024, the timing of the recent hack has also sparked discussion. Many speculate that the asset movements could be a planned liquidation by the US government or another potential hack orchestrated by the infamous couple.
On the Flipside
- The U.S. government shuffled some of its assets back in July.
- The United States government is one of the largest Bitcoin holders, estimated to hold over 200,000 BTC.
- Lending protocol Radiant Capital was recently hacked for $50 million.
Why This Matters
A hack on a U.S. government-linked crypto wallet highlights cybercriminals’ growing audacity, underscoring the need for stronger security measures to safeguard the industry.
Read this article for more about the US portfolio and its asset shifts:
US Govt Moves 4,000 Bitcoin: Looming Sell-off or Nothingburger?
MicroStrategyโs Michael Saylor has been attempting to smooth things over with the industry over the recent months:
Saylor U-Turns Bitcoin Custody Comments Following Backlash
