Crypto tracking tool Whale Alert reported that the hackers behind the 2016 Bitfinex exchange heist moved 416 Bitcoin (approximately $4.1 million) on June 11, 2020. The funds were sent in 20 separate transactions, each carrying between 15 and 33 BTC, to an unidentified wallet address. This marks the single largest payout day for the cyber thieves since they began cashing out their ill-gotten gains in mid-2019.
Cash-Out Strategy: Small Batches, High-Price Timing
The hackers first moved stolen coins in June and August 2019, transferring about 170 BTC and 300 BTC worth $2.3 million and $2.7 million at that time, respectively. More recent movements include 77.64 BTC ($800,000) on June 2 and 28.4 BTC ($255,000) on May 22. All transactions have been executed in small quantities to avoid triggering immediate attention, and crucially, they have coincided with every notable uptick in Bitcoin's price. On June 10, BTC briefly surged to nearly $10,000 before facing strong resistance, slumping nearly 6% over the next 24 hours to $9,331. The hackers moved their coins almost simultaneously with this price action, suggesting a deliberate strategy to exploit market volatility.
Since the May 11 block reward halving, Bitcoin has repeatedly failed to close above the psychological $10,000 barrier. Analysts consider this level a key threshold for igniting a sustained bull run, similar to patterns observed after previous halvings. By selling into price spikes, the hackers are able to offload their holdings with minimal market impact, likely through over-the-counter (OTC) deals or dark pool exchanges.
The $1.1 Billion Stash and Ongoing Tracking
In August 2016, hackers breached Hong Kong-based exchange Bitfinex and made off with 120,000 BTC, then worth $72 million. At current prices (around $11,000 per BTC), that stash is valued at over $1.1 billion. Despite law enforcement efforts—including the 2017 arrest of an alleged money launderer—the majority of the stolen coins remain under the hackers' control. Whale Alert and other blockchain surveillance firms continue to monitor known wallets, but the perpetrators have employed mixing services and may have used Lightning Network transactions to obfuscate the trail.
The June 11 transfer is the largest single-day movement since the hackers began liquidating their hoard. Whether this indicates an acceleration of sales or a one-time event remains unclear. The crypto community is closely watching both the Bitcoin price action around $10,000 and the hackers' next move. If history is any guide, the thieves will likely wait for another attempt by BTC to break higher before striking again.
What do you think about the Bitfinex hackers’ strategy? Share your thoughts in the comments.