Bitfinex Set To Get 120,000 BTC Compensation From the US Government

It appears that the United States government is going to compensate Bitfinex, which lost nearly 120,000 Bitcoin (BTC) in a 2016 hack.

The United States government has stated that Bitfinex is the sole entity eligible for compensation in the 2016 Bitfinex hack, which saw nearly 120,000 BTC stolen from the exchange. This determination is based on the fact that Bitfinex customers were fully reimbursed for their losses through BFX tokens.

According to a report by the government, Bitfinex is the only entity that qualifies as a victim under the Crime Victims Rights Act (CVRA) or for restitution under the Mandatory Victims Restitution Act (MVRA).

The government's statement comes in response to a request from the Department of Justice to distribute the BTC that was seized in connection with the Bitfinex hack. In 2022, the authorities seized nearly 95,000 BTC, which is now valued at over $5.8 billion.

Bitfinex has been working with the authorities to recover the stolen BTC, and the exchange's customers were compensated for their losses through BFX tokens, which were issued by Bitfinex. Some customers were also compensated with shares from Bitfinex's parent company, iFinex.

Following this update from the US government, Bitfinex's LEO token initially saw a surge, but it later cooled off. As per coinmarketcap data, when the US government shared the report, the price of LEO tokens soared by 14%, moving from $5.84 to $6.88 in just two hours. However, it later gave up all of those gains.

At press time, LEO is trading near $6.10 with a 2% price increase over the past 24 hours. During the same period, investor and trader interest soared, as its trading volume jumped by nearly 500%, indicating strong participation from traders and investors.

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