The U.S. Government has demanded the return of approximately 94,643 BTC, along with some BCH, BSV, and BTG, that were lost in the 2016 Bitfinex hack to the exchange.

Ilya Lichtenstein and his wife Heather Morgan were arrested and sentenced in 2022 for stealing 119,754 BTC, which was worth $72 million at the time but is now valued at over $11.8 billion. This has sparked controversy surrounding the compensation plan for the victims of the hack.

Bitfinex’s Compensation Plan and Court’s Controversial Ruling

Following the August 2016 attack, Bitfinex suspended withdrawals and initiated a recovery plan, socializing a 36% loss for all accounts. Users received BFX tokens as compensation, which could be exchanged for iFinex shares or fiat money. All BFX tokens were redeemed by customers within eight months, fulfilling the government’s requirements for reimbursing the victims.

In October 2024, the U.S. government revealed that Bitfinex could potentially receive the full compensation from the lawsuit, as it had already compensated its customers. However, the government acknowledged that many customers still suffered losses in the value of their accounts.

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Tigran Gambaryan Denied Bail in Nigeria; DOJ Seeks 18-Month Sentence for Bitfinex Hacker

Tigran Gambaryan’s legal battle in Nigeria continues after an Abuja court denied his bail request this week. The Binance executive attempted to convince the judge that he needed specialized medical care due to health issues, but the court rejected his plea, accusing him of “abusing the judicial process.”

Elsewhere, Heather Morgan, the New York-based rapper known as “Razzlekhan” and involved in the 2016 Bitfinex hack, may face less than two years in prison for her role in stealing and laundering 120,000 BTC. U.S. prosecutors are calling for leniency in her sentencing, noting her cooperation since her arrest two years ago.

Gambaryan Denied Bail Again

Gambaryan, the Global Intelligence Head at Binance, was denied bail again on October 11 in Abuja after the court sided with Nigeria’s Economic and Financial Crimes Commission (EFCC). His bail request hinged on claims that he required urgent medical attention, which Nigeria’s prison system allegedly couldn’t provide. In a prior hearing in September, he appeared frail and claimed that authorities denied him a wheelchair, despite suffering from a herniated disc.

Judge Emeka Nwite maintained his position, stating that there was no evidence suggesting Nigeria’s correctional facilities were unable to address Gambaryan’s health needs. In May, Nwite rejected a similar bail application, asserting that Gambaryan could receive necessary medical care while in custody, a decision that was upheld after an appeal.

Judge Nwite remarked that Gambaryan’s most recent bail request amounted to “abusing judicial procedure” while his appeal was pending in the appellate court.

Gambaryan was arrested in February alongside Nadeem Anjarwalla, Binance’s operations head in Africa, but Anjarwalla managed to escape from custody and reportedly fled to Kenya. Despite a trace being found back to Kenya, he has not been apprehended, with his connections to high-ranking figures in the country speculated to be a factor.

The EFCC charged Gambaryan and his employer with laundering $35 million, although tax evasion charges against him were dropped.

Binance expressed its disappointment with the Abuja court’s decision, emphasizing that Gambaryan has been detained “illega

Notably, Nigeria has summoned key Binance executives, including CEO Richard Teng, over several months, but all of them have refused to comply with the summons.

Gambaryan’s wife, Yuki, pledged to continue fighting for his release, calling the denial of proper medical care “completely unjust.”

The case is set to resume on October 18.

DOJ Seeks 18-Month Sentence for Bitfinex Hacker

While Nigerian authorities pursue Gambaryan’s case, the U.S. Department of Justice (DOJ) is advocating for a more lenient sentence for one of the individuals involved in the 2016 Bitfinex hack, which resulted in the theft and laundering of over $7 billion in cryptocurrency.

In a filing with the District of Columbia, the DOJ recommended an 18-month prison term for Heather Morgan, also known as “Razzlekhan.” The sentence, according to the DOJ, would “serve the interests of justice.”

Morgan, along with her husband Ilya Lichtenstein, is accused of conspiring to launder 120,000 BTC stolen in the 2016 Bitfinex hack, now worth approximately $7.85 billion. The DOJ revealed that Lichtenstein told Morgan about the hack four years after it happened and instructed her to launder the stolen funds.

Initially, prosecutors believed that both Morgan and Lichtenstein had participated in the hack together. However, Lichtenstein later took full responsibility for the cyberattack and the money laundering in a plea deal.

“The defendant participated in this scheme with the intent to assist Lichtenstein in laundering stolen funds and later understood that, by doing so, she was attempting to conceal her involvement in the earlier Bitfinex hack,” prosecutors stated.

Morgan faces up to five years for conspiracy to launder money and another five years for conspiracy to commit fraud against the U.S. However, because she has no prior criminal history, did not directly participate in the hack, and has cooperated with authorities, the DOJ recommended a sentence of 18 months, followed by three years of supervised release.

As part of the plea agreement, Morgan must return digital assets valued at over $6 billion, which were seized from her by the government.

Morgan’s sentencing is scheduled for November 15, with Lichtenstein’s sentencing set for the day before.

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Bitfinex Securities Launches Regulated Public Offering of Tokenized US Treasury Bills in El Salvador

Bitfinex Securities has introduced the world’s first regulated public offering of tokenized U.S. Treasury Bills, utilizing El Salvador’s newly established securities licensing framework.

The token, issued by NexBridge Digital Financial Solutions, offers investors exposure to short-term U.S. Treasury Bills, all denominated in U.S. dollars.

After the initial subscription period concludes, the token will be available for trading on Bitfinex Securities’ secondary market under the ticker USTBL.

Jesse Knutson, Head of Operations at Bitfinex Securities, stated: “This issuance is a major advancement in financial technology, combining the security of government-backed securities with the flexibility and efficiency of digital assets.”

He continued, “Including USTBL tokens in investment portfolios will allow investors to balance their digital asset holdings with the stability of traditional financial instruments, providing a new diversification tool that can help reduce overall portfolio risk.”

Nicolas Cane, CEO of NexBridge, commented, “By bringing U.S. Treasury Bills on-chain, we are not only providing a secure and compliant investment opportunity, but also setting the stage for a new paradigm in finance. Our goal is to create a connected environment where traditional assets and blockchain technology merge seamlessly, promoting a transparent and efficient financial ecosystem for investors globally.”

El Salvador introduced its securities law in January 2023, and Bitfinex Securities became the first platform to receive a Digital Asset License under this regulatory framework.

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Bitfinex Analysts Predict Strong Institutional Demand Will Drive Bitcoin to $200K by Mid-2025, with Mild Price Dips

Bitcoin’s price fluctuations in 2025 are expected to be short-lived due to increasing institutional adoption, according to analysts at Bitfinex. They foresee Bitcoin potentially reaching $200,000 by mid-2025, with any price dips being temporary and mild.

In a market report released on December 17, Bitfinex analysts stated that their minimum price estimate for Bitcoin by mid-2025 is $145,000, and it could rise to as high as $200,000 under favorable conditions. They attributed this optimistic outlook to strong demand from institutional investors, which would help limit the severity of any price corrections.

Mild Volatility Expected in 2025

While Bitcoin may experience some volatility in the first quarter of 2025, the overall trend remains positive, driven by continuous institutional inflows. The analysts highlighted the ongoing growth of Bitcoin spot exchange-traded funds (ETFs), which are playing a crucial role in Bitcoin’s price increase. As of January, approximately $36 billion had flowed into U.S.-based spot Bitcoin ETFs, and these funds now hold more than 1.13 million BTC.

The Bitfinex analysts suggested that institutional adoption, particularly through Bitcoin ETFs, will create significant demand-side pressure, ensuring that any price dips will be short-lived. This steady influx of institutional capital is expected to outweigh any temporary corrections in the market.

Bitcoin’s Long-Term Growth Potential

At the time of the report’s publication, Bitcoin was trading at $105,360, and some experts predict its value could rise substantially in the long term. Castle Island Ventures partner Nic Carter mentioned that Bitcoin’s market capitalization could eventually rival that of gold, which would place Bitcoin’s price at around $900,000 per coin.

Bitcoin author Andy Edstrom added that he is already noticing how the price of Bitcoin is evolving. He commented on the fact that Bitcoin’s price movements are becoming more significant, with changes of $1,000 no longer being considered major.

In line with these projections, Bitfinex analysts also drew comparisons to Bitcoin’s previous market cycles. If Bitcoin follows a similar pattern to its 2021 rally, it could see a 40% increase above its moving averages, potentially reaching as high as $339,000. In a less likely scenario, similar to the 2017 cycle with diminishing returns, Bitcoin could peak around $290,000 by early 2026.

Potential Shift in Market Narrative with U.S. Bitcoin Reserve

A significant development in the crypto market could come if the U.S. government creates a strategic Bitcoin reserve, a move that has been speculated following Donald Trump’s election win in November. Pro-crypto Senator Cynthia Lummis has indicated that she would introduce legislation for the U.S. to buy Bitcoin and hold it for at least 20 years.

This potential shift in the U.S. government’s approach to Bitcoin could radically change market dynamics, with crypto analyst Tyler Durden stating that such a move would make the traditional four-year Bitcoin cycles obsolete.

Conclusion

With increasing institutional interest, the establishment of Bitcoin ETFs, and the possibility of a U.S. Bitcoin reserve, Bitfinex analysts predict that Bitcoin could reach a price of $200,000 by mid-2025. Although volatility is expected in the short term, the growing institutional adoption and continued demand for Bitcoin make any significant price dips unlikely to last long. As the market matures, Bitcoin’s long-term potential remains strong, with some experts even forecasting its value to rise to levels far beyond the $200,000 mark.

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In the fast-paced world of cryptocurrency trading, platforms like Bitfinex have emerged as key players in providing liquidity, tools, and access to various digital assets. As one of the largest and most well-established cryptocurrency exchanges, Bitfinex has attracted traders from all over the globe. In this blog post, we will delve into an in-depth market review of Bitfinex, covering its features, advantages, challenges, and overall standing in the crypto ecosystem.

Introduction to Bitfinex

Launched in 2012, Bitfinex is a cryptocurrency exchange known for its robust infrastructure, advanced trading tools, and wide selection of cryptocurrencies. Based in Hong Kong, the platform has grown to become one of the top exchanges in terms of trading volume, attracting both retail and institutional investors. Bitfinex offers spot trading, margin trading, derivatives, lending, and staking, making it a versatile platform for different types of traders.

Trading Features and Tools

One of Bitfinex’s strongest points is its advanced trading features and tools, which cater to both novice traders and seasoned professionals.

Spot Trading: Bitfinex provides a broad range of cryptocurrency pairs for spot trading. From well-known assets like Bitcoin (BTC) and Ethereum (ETH) to lesser-known altcoins, the exchange supports a diverse set of cryptocurrencies.

Margin Trading: Bitfinex is renowned for its margin trading capabilities. Traders can leverage their positions with up to 10x leverage, offering the potential for significant profits. However, this comes with a higher risk, making it suitable only for experienced traders.

Derivatives: For those seeking even more advanced trading opportunities, Bitfinex offers derivatives such as perpetual contracts and futures. These products allow users to profit from both rising and falling markets.

Lending and Borrowing: Bitfinex has a unique lending platform where users can lend their cryptocurrencies to other traders in exchange for interest. This feature adds a passive income stream for those holding digital assets.

Staking: Bitfinex has recently incorporated staking into its services, allowing users to earn rewards for holding specific cryptocurrencies such as Tezos (XTZ) and Cosmos (ATOM).

Liquidity and Trading Volume

Bitfinex has long been recognized for its high liquidity, which is a key factor in its success. With a large number of active users and institutional traders, Bitfinex’s market depth allows traders to execute large orders without significant price slippage. Its liquidity is particularly strong for Bitcoin, Ethereum, and stablecoins like Tether (USDT), ensuring that users can easily enter and exit positions at competitive prices.

Security Measures

Security is always a top concern for cryptocurrency exchanges, and Bitfinex has taken several measures to protect its users.

Two-Factor Authentication (2FA): Bitfinex employs two-factor authentication for account security, making it more difficult for unauthorized parties to access accounts.

Cold Storage: The majority of users’ funds are stored in cold wallets, which are not connected to the internet, reducing the risk of hacks.

Insurance Fund: Bitfinex has an insurance fund that is designed to cover any losses resulting from a system failure or breach, ensuring users’ funds are protected.

Despite these measures, Bitfinex has faced security incidents in the past, including a major hack in 2016 that resulted in the loss of millions of dollars worth of Bitcoin. Since then, the exchange has made significant improvements in its security protocols.

User Experience and Interface

Bitfinex offers a highly customizable user interface. For beginners, the platform might appear overwhelming due to the abundance of features and tools. However, for experienced traders, the interface provides all the necessary charts, indicators, and order types to make informed trading decisions.

The mobile app is well-designed, offering users the ability to trade on the go. However, some users have reported occasional bugs, which can be frustrating when using the app for more complex trading activities.

Fees and Costs

Bitfinex uses a tiered fee structure based on 30-day trading volume. For those with higher volumes, the fees can be significantly lower. The platform offers both maker and taker fees, with the maker fees being lower than taker fees, which is common in most exchanges.

In addition to trading fees, Bitfinex charges withdrawal fees, which vary depending on the cryptocurrency. The withdrawal fees are often higher than other exchanges, so it’s essential for traders to factor this into their cost calculations.

Customer Support

Customer support is an area where Bitfinex has received mixed reviews. While the platform offers a comprehensive help center with guides, FAQs, and tutorials, some users have reported slow response times when submitting support tickets. The availability of live chat is limited, which can be frustrating for users needing immediate assistance.

Regulatory Issues

Like many other cryptocurrency exchanges, Bitfinex has faced regulatory challenges in various jurisdictions. In 2019, the exchange was subpoenaed by the New York Attorney General (NYAG) over allegations of misrepresenting its reserves. However, Bitfinex has since settled the case and continues to operate globally.

As regulatory scrutiny increases worldwide, Bitfinex’s ability to adapt to different legal frameworks will be essential for its continued success.

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