172.5 Suspicious Bitcoin On The Move
Yesterday, the crypto community was in for a bit of a surprise. Bitcoin from the infamous 2016 hack of Bitfinex, which resulted in the theft of nearly 120,000 BTC, was suddenly moved. As spotted by cryptocurrency transaction tracker “Whale Alert”, which tracks large fund transfers, hacked funds, and key blockchain processes, five suspicious transactions were seen on the Bitcoin chain within a few minutes. This comes after there were a few small Bitcoin transactions from the presumed hacker’s address were registered earlier this year. The details of the latest transfers can be seen below.
Once community members saw this series of transactions, a flurry of rumors quickly hit Crypto Twitter. You see, in Bitfinex’s white paper for its LEO digital asset, the firm explained that it would try and communicate with the hacker to work out a compromise. It has been suggested that attempts are being made to allow the hacker to keep a portion of the winnings in exchange for a majority of the funds.
What makes this even more interesting is that if Bitfinex manages to secure such a deal with the hacker, they would use the funds they receive to purchase LEO (just as Binance buys back BNB), thus pushing up the value of the asset greatly. Three Arrows Capital’s Su Zhu laid out more of the details below.