Hacker, Cryptocurrency, U.S. Government, Bitfinex Hack, Ethereum, Tether, USD Coin, Cyber Theft, Blockchain, Crypto Investigation.

US government-linked address likely exploited for over $20 million in crypto

A hacker has reportedly taken more than $20 million in cryptocurrency, including stablecoins and Ethereum (ETH), from a U.S. government-controlled wallet linked to the notorious 2016 Bitfinex hack.

Suspicious Transfers Raise Alarms

The questionable transactions occurred on October 24. This prompted concern among blockchain analysts, including ZachXBT, who labeled the transfers as “nefarious” and suggested they might involve theft. Arkham Intelligence first identified the transfers from the wallet, which had remained inactive for eight months. The wallet suddenly moved $1.25 million in Tether (USDT) and $5.5 million in USD Coin (USDC) from the DeFi platform Aave.

Details of the Transactions

Additionally, the hacker moved around $13.7 million in aUSDC—an interest-bearing token that represents USDC held in Aave—along with $446,000 worth of Ethereum to a new wallet. Authorities had seized these assets during their investigation of the 2016 Bitfinex hack, where over $3.6 billion in digital assets disappeared. After the seizure, the government-controlled wallet accumulated significant amounts of cryptocurrency.

Analysis of the Movement of Funds

Further investigation revealed that the hacker sent approximately $320,000 worth of Ethereum to various exchanges. Another $80,000 went to several smaller wallets. Notably, the hacker created the wallet that received these funds just days before the transfer, raising more suspicions about the transactions.

Ongoing Monitoring by Authorities

As of this report, the Department of Justice has not commented on the matter or shared details regarding the transfers. Analysts and blockchain experts continue to monitor the movement of these funds as the investigation unfolds.

The post US government-linked address likely exploited for over $20 million in crypto appeared first on CryptoSlate.

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