Nearly four years after the infamous Bitfinex hack, the cyber-thieves behind the 2016 theft of 120,000 Bitcoin have executed their biggest single-day payout yet. On June 11, 2020, blockchain tracking tool Whale Alert reported that 416 Bitcoin (BTC), valued at approximately $4.1 million at the time, were moved in 20 separate transactions, each carrying between 15 and 33 BTC. The coins were transferred to an unknown wallet address, likely for subsequent sale on over-the-counter markets.
Pattern of Small, Timed Transfers
This latest transfer marks the largest daily movement since the original heist. Previous notable cash-outs include 170 BTC ($2.3 million) in June 2019, 300 BTC ($2.7 million) in August 2019, and smaller moves of 77.64 BTC ($800,000) on June 2, 2020, and 28.4 BTC ($255,000) on May 22, 2020. Each transfer has been carefully calibrated to coincide with upward price movements in Bitcoin. On the day of the $4.1 million transfer, Bitcoin briefly surged toward $10,000 before facing strong resistance and sliding nearly 6% to $9,331 within 24 hours, according to data from markets.bitcoin.com.
Since the halving on May 11, 2020, Bitcoin has repeatedly struggled to break through the $10,000 psychological barrier. The hackers’ strategy — cashing out small portions during price rallies — minimizes market impact while maximizing fiat returns. Analysts note that this pattern provides a false sense of security for buyers, as each transaction appears insignificant against Bitcoin's daily trading volume.
The Looming Shadow of 120,000 BTC
The stolen stash of 120,000 BTC, worth $72 million at the time of the 2016 hack, is now valued at over $1.1 billion at current prices. While a fraction has been laundered through small transfers, the vast majority remains untouched in known wallet addresses. Each movement reignites concerns over potential selling pressure, especially when Bitcoin approaches key resistance levels.
Market reaction to the latest transfer was muted, with Bitcoin continuing its post-rejection decline. However, traders remain wary: if hackers were to accelerate their liquidation or move a significant portion of the remaining funds, it could trigger a sharp selloff. The Bitfinex exchange and law enforcement agencies have made limited headway in recovering the assets, though investigations persist.
The hack itself remains one of the largest cryptocurrency exchange breaches in history. It led to Bitfinex issuing BFX tokens to cover customer losses and eventually repurchasing them as the exchange recovered. For now, the hackers continue to chip away at their digital fortune, keeping the market in suspense with every transaction.