In a stunning turn of events, hackers who targeted a wallet affiliated with the US government in a major cyber attack have now returned a significant portion of the stolen money. The hack, which initially resulted in the theft of $20.7 million in Ethereum (ETH), USDC, aUSDC, and USDT, has now seen $19.3 million of the stolen crypto recovered. This means that $1.4 million is still in the hands of the hackers.
The cyber attack took place on October 25, 2024, and involved assets acquired from the Bitfinex hackers. The stolen funds were traced to nine US government addresses that had been previously used to recover crypto assets linked to various cybercriminal activities. The attackers moved a total of $20.7 million, including approximately 177.89 Ethereum worth $446,000, 13.69 million aUSDC, 5.44 million USDC, and 1.125 million USDT.
To cover their tracks, the hackers quickly rerouted the funds through multiple transactions. Some of the stolen Ethereum was sent to Binance deposit wallets, raising suspicions about potential money laundering.
However, within 24 hours of the cyber attack, blockchain tracking systems began to record a surprising development. A significant amount of the stolen assets was recovered in wallets linked to the US government. Using the Arkham Intelligence and Lookonchain platforms to analyze transactions, it was discovered that several transactions sent back aUSDC, USDC, and small amounts of Ethereum and other tokens. Analysts estimate that $19.3 million, almost 93% of the stolen money, has been recovered.
Despite this positive development, approximately $1.4 million in Ethereum and other cryptocurrencies is still missing. It is believed that the hackers may attempt to withdraw or transfer the remaining funds in small amounts to avoid detection.
There has been no official statement from the US government regarding the return of the funds, but blockchain intelligence companies are closely monitoring the related wallets. It is unclear whether the hackers were forced to return the money or made the decision independently.
While the recovery of $19.3 million is a positive outcome, this hack highlights the risks associated with government-owned crypto assets. It raises concerns about the long-term security of such assets and the potential vulnerabilities of storing them on the blockchain. More information may be revealed in the coming weeks as the investigation continues.
