Hackers Steal $20 Million in Crypto From US Government Wallets

Hackers have allegedly stolen $20 million in cryptocurrency from wallets linked to the US government. The stolen assets include USDC, USDT, aUSDC, and Ethereum (ETH), and the hackers have already begun laundering the funds through instant exchanges, according to reports.

The breach was detected by Arkham Intelligence and crypto investigator ZachXBT, though the US government has yet to confirm the theft publicly. The assets involved are part of the $3.6 billion law enforcement seized from the Bitfinex hackers, a significant sum held by the government.

Arkham Intelligence noted that an address linked to the US government was compromised, leading to the loss of the $20 million in crypto. The organization stated, “We believe the attacker has already started laundering the stolen funds through suspicious addresses associated with a money laundering service.”

ZachXBT, who has experience solving similar cases, backed Arkham’s findings. He noted that the stolen funds were quickly moved to instant exchanges, suggesting that the hackers were looking to cash out fast. The theft involved some of the most common stablecoins, including USDC, USDT, and aUSDC, along with Ethereum (ETH).

The US government holds one of the largest collections of Bitcoin and other crypto assets in the world, mostly due to criminal asset seizures. In the past, even small signs of government plans to sell off crypto holdings have triggered waves of concern across the market. The ability of these hackers to breach government security and launder the stolen funds could be a serious red flag.

Adding to the complexity, Arkham said the stolen funds came from the $3.6 billion seized from Bitfinex hackers, further muddying the situation. Recently, the US government has taken steps to start the process of restitution for victims of the 2016 Bitfinex hack. The government has set up a way for users affected by the hack to recover some of their assets, while also forcing the hackers to give up claims to those funds.

Despite the serious nature of this breach, details about the hackers’ identities and the specific wallet vulnerability remain unclear. So far, the US government has not provided any public acknowledgment of the incident, leaving questions about how such a large breach was possible and what measures will be taken next to address the theft.

The incident could cause further unease in the crypto community, especially as it comes at a time when the market is still dealing with various security and regulatory concerns.