A hacker may have stolen over $20 million worth of crypto, including stablecoins and Ethereum (ETH), from a US government-controlled wallet connected to the infamous 2016 Bitfinex hack.

The suspicious transfers occurred on Oct. 24, raising alarms among blockchain analysts, including ZachXBT, who called the transfers “nefarious” and hinted at possible theft.

Arkham Intelligence first flagged the transfers from the wallet, which had been dormant for eight months before it suddenly moved $1.25 million in Tether (USDT) and $5.5 million in USD Coin (USDC) from the DeFi platform Aave.

Additionally, around $13.7 million in aUSDC — an interest-bearing token representing USDC deposited in Aave — along with $446,000 worth of Ethereum, was sent to a recently created wallet.

The funds had been seized by US authorities as part of the investigation into the 2016 Bitfinex hack, in which over $3.6 billion in digital assets were stolen. Following the seizure, the government-held wallet had received significant amounts of crypto.

Further analysis revealed that approximately $320,000 worth of Ethereum was sent to various exchanges, while another $80,000 was distributed across multiple smaller wallets. The wallet that received these funds had been created only days before the transfer, intensifying concerns about the suspicious nature of the transactions.

As of press time, the Department of Justice has not commented on the situation or provided information regarding the transfers. Analysts and blockchain experts are continuing to monitor the movement of the funds as the investigation unfolds.

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