In an unexpected turn of events, hackers who recently targeted a wallet connected to the US government have returned a significant portion of the stolen funds. The cyberattack took place on October 25, 2024, and resulted in the theft of $20.7 million worth of Ethereum (ETH), USDC, aUSDC, and USDT.
The stolen crypto assets were traced back to nine US government addresses that had previously been used to recover crypto assets from various cybercriminal activities. The attackers moved a total of $20.7 million, including 177.89 Ethereum valued at $446,000, 13.69 million aUSDC, 5.44 million USDC, and 1.125 million USDT.
To cover their tracks, the hackers quickly rerouted the stolen funds through multiple transactions, including sending some of the stolen ETH to Binance deposit wallets, raising suspicions of money laundering.
However, within 24 hours of the cyberattack, blockchain tracking systems detected a surprising development. A significant amount of the stolen assets, approximately $19.3 million, was returned to government-linked wallets in the US. Analyzing the transactions through the Arkham Intelligence and Lookonchain platforms, it was found that several transactions sent back aUSDC, USDC, and small amounts of Ethereum and other tokens. This recovery accounted for nearly 93% of the stolen funds.
Despite this positive development, there is still $1.4 million that remains missing. This includes primarily Ethereum and small amounts of other cryptocurrencies. It is believed that the hackers may attempt to withdraw or transfer the remaining funds in small increments to avoid detection.
While there has been no official statement from the US government regarding the return of the funds, blockchain intelligence companies are closely monitoring the related wallets. It is unclear whether the hackers were compelled to return the money or decided independently to do so.
Although the recovery of $19.3 million is a positive outcome, this incident highlights the risks associated with government-owned crypto assets. It raises concerns about the long-term security of such assets and the potential vulnerabilities of storing them on the blockchain. The investigation is still ongoing, and more information may be revealed in the coming weeks.
