Government Wallet Recovers $19.3 Million from Hack

A wallet linked to the United States government retrieved $19.3 million from the $20 million purported hack earlier this week.

The government-linked wallet has seemingly recovered 88% of the lost funds as of Friday, within 24 hours of the security incident, according to crypto analytics firm Arkham in a post on social media platform X.

Previously, it was reported that a U.S. government-linked wallet lost over $20 million worth of cryptocurrency on October 24. The lost funds included $14 million in AUSDC, $5.4 million in USDC, $1.1 million in USDT, and $500,000 in ETH.

At the time of the incident, the reasons for the fund's movement were unclear. However, both Arkham and crypto investigator ZachXBT noted that the movement suggested malicious activity. The perpetrator transferred the funds to non-custodial applications, seemingly attempting to launder the stolen cryptocurrency. Notably, the funds had not been moved in over eight months prior to October 24.

Additionally, the stolen funds were connected to government seizures related to the 2016 Bitfinex hack, where the crypto exchange lost nearly 120,000 BTC in a security compromise.