U.S. Government Suspected of Controlling Fifth Largest Bitcoin Wallet Tied to Bitfinex Hack

After FTX’s fall in 2022, concerns about risks in centralized crypto exchanges grew. The biggest hack of 2022 where $4.6 billion was washed out is still fresh on people’s minds. It’s surprising how the investigating agency involved in the cyber theft could itself come under scrutiny. 

PeckShield, a cybersecurity firm, has expressed concerns on X post regarding the potential control of the fifth-largest Bitcoin wallet connected to the Bitfinex hack. The 5th largest wallet in the world holds about 94,643 BTC and is believed to be managed by the US Government.

Notably, among exchanges, Binance, Coinbase, and Bitfinex hold the most significant BTC supplies, with holdings of 691.2K BTC, 439.8K BTC, and 320.7K BTC, respectively. Binance, Huobi, and Bitfinex have been subjects of discussion and FUD concern lately.

It is being revealed that the wallet’s ownership is tied to the seizure address, evidenced by a transfer of around 567.5 BTC (valued at about $21.88 million) on February 1st, 2022, from wallet 1CGA4s to the specific seizure address. 

Role of DOJ in the Alleged Hack?

This is not unprecedented; as PeckShield on similar grounds reported in 2022 that the US Department of Justice (DOJ) took control of an account linked to the Bitfinex hack, leading to the seizure of $3.55 billion worth of Bitcoin, underscoring the cryptocurrency’s connection to the alleged hack. 

The public reaction to the DOJ is corrupt and manipulative and people are speculating about their role in manipulating the recent US elections. 

Recently, a New York resident, Ilya “Dutch” Lichtenstein, has admitted to committing the original 2016 cyberattack on Bitfinex in a court revelation. These combined events emphasize the need to safeguard digital assets and enhance defense mechanisms against cyber threats. 

Bitfinex has faced controversy multiple times and lacks transparency. Having said that, it is also equivalent to noting how the US lawmakers got involved here and if this is the whole story or if there is something still inside the box. How safe are our digital assets at this time? Only time will tell.