Bitfinex Offers $400M Reward for Return of Stolen Funds from 2016 Incident

Crypto exchange giant Bitfinex has announced a $400 million reward for the return of the funds stolen in the 2016 Bitcoin hack. The move comes on the fourth anniversary of the incident which saw the loss of about 120,000 BTC currently valued at $1.34 billion.

Cryptocurrency-related thefts are still a recurring problem for the industry with over $1 billion stolen in only the first five months of 2020. Meanwhile, law enforcement officials in China have arrested some principal agents involved in the PlusToken crypto scam.

Bitfinex to Pay Hackers if they Return Stolen Bitcoin

Bitfinex announced the reward via a blog post on its website published on Tuesday (August 4, 2020). According to the statement, the move is the latest effort by the platform to recover the funds stolen four years ago.

An excerpt from the post reads:

“Bitfinex is offering a reward to any persons that connect us with hackers responsible for the unauthorized transfer of almost 120,000 bitcoins from the exchange in August 2016. As part of the same initiative, Bitfinex is also offering a reward to the hackers themselves for the return of the stolen property. This incident is a dark chapter in our exchange’s history, and we are pleased to offer this reward as further evidence of our determination to obtain the lost property.”

As part of the reward scheme, Bitfinex is calling on individuals able to connect Bitfinex with the hackers responsible for the theft. The crypto exchange also plans to parley with the hackers directly for the return of the stolen funds.

Anyone able to connect Bitfinex with the hackers will receive 5% of the total funds recovered which amounts to 6,000 BTC (about $67.2 million). The hackers themselves will receive 25% of the returned loot valued at $336 million. According to the press release, Bitfinex will mandate the hackers to prove their ownership of the funds without compromising their identity.

Since the 2016 hack, Bitfinex has been able to recover about 27 BTC in conjunction…

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