The LEO price is up following the US government’s claims that the Bitfinex exchange is the sole entity eligible for compensation for the Bitcoin hack on the exchange in 2016. This has provided a boost for LEO, considering its role as the utility token in the crypto exchange’s ecosystem.
LEO Price Surges Amid Potential Bitcoin Recovery For Bitfinex
LEO price surged to a monthly high of $6.50 following a US government filing suggesting that Bitfinex may soon recover part of the Bitcoin it lost in the 2016 hack. The government mentioned in court documents that it is not aware of any person who qualifies as a victim under the Crime Victims’ Rights Act or the Mandatory Victims Restitution Act (MVRA) besides the crypto exchange.
This filing was in the US government’s case against Ilya Lichtenstein, who they arrested for allegedly laundering the stolen bitcoins from the Bitfinex hack. Following his arrest in 2022, the government seized 94,643 BTC from Lichtenstein. Therefore, following the recent filing, the crypto exchange might be able to reclaim some of these bitcoins, which are currently worth around $5.8 billion.
This won’t be the first time the crypto exchange will receive recovered funds from the US authorities. In 2023, the exchange announced it received $312,219.71 in cash and 6.917 BCH from the United States Department of Homeland Security (DHS) as part of the recovery efforts.
Meanwhile, there will no doubt be concerns about what the crypto exchange will do if it reclaims these bitcoins from the US government and how this could affect the BTC price. The exchange will likely use these funds to redeem the Recovery Right Tokens (RRTs) issued following the 2016 security breach.
US Government Could Soon Sell 69,370 BTC Following Court Order
The LEO price surge and Bitfinex’s potential Bitcoin recovery come amid the development that the US government could soon sell 69,370 BTC following the Supreme Court’s rejection of the certiorari petition in the Battle Born Investments case against the United States. This move could significantly impact the Bitcoin price, considering the amount of BTC tokens.
However, as CoinGape reported, there is the possibility that individuals like MicroStrategy chairman Michael Saylor could buy the 69,370 BTC if the US government decides to sell them. However, for now, it looks unlikely that the government will sell these coins as some processes are still involved before the US Marshals or any other agency.
Meanwhile, it could take a while before Bitfinex may be able to reclaim the bitcoins that the US government seized from Ilya Lichtenstein. However, the US government recognizing the crypto exchange as eligible for compensation is undoubtedly a step in the right direction.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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