Bitfinex told OCCRP the analysis was “incomplete” and “incorrect” and that there was “evidence of negligence…on the part of other counterparties that led to the hack.” Bitgo declined to comment. Ledger Lab did not respond to a request for comment.
The hacker covered their tracks with a data destruction tool, used to permanently delete logs and other digital artifacts that might have identified the initial entry point into Bitfinex systems, meaning it’s not clear how they got into the exchange’s systems, only the security weaknesses that they took advantage of once inside. The transfer of the more than 119,000 bitcoins from over 2,000 users’ accounts to wallets under the thief’s control took just over three hours. The cryptocurrency sat there for months until, starting in January 2017, someone started sending small amounts zig-zagging through other accounts. The money was eventually cashed out or used to make small online purchases.
Investigators managed to follow the money and, six years after the hack, arrested the couple on charges of laundering the stolen bitcoins. Burner phones, fake passports, and USB sticks containing the electronic security keys to the wallet holding $3.9 billion worth of bitcoin were found under the couple’s bed in their New York apartment. Both have pleaded not guilty, and are awaiting trial.
It is unclear whether the lessons from the Bitfinex hack have led to changes in the company’s procedures. The company told OCCRP that the report was “incorrect” and that there was “evidence of negligence…on the part of other counterparties that led to the hack.” Bitgo declined to comment.
Karen A. Greenaway, a former FBI agent and cryptocurrency specialis ..
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