In a surprising turn of events, a recent major cyber attack targeting a wallet affiliated with the US government has resulted in the return of $19.3 million by the hackers. The attack, which took place on October 25, 2024, involved the theft of $20.7 million in Ethereum (ETH), USDC, aUSDC, and USDT. However, due to the prompt response of blockchain tracking systems, a significant portion of the stolen assets has been recovered.
The stolen funds were traced to nine US government addresses that had previously been used to recover crypto assets associated with various cybercriminal activities. It was discovered that the attackers had moved a total of $20.7 million, which included 177.89 Ethereum worth $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 about potential money laundering activities.
However, within 24 hours of the cyber attack, blockchain tracking systems began recording a surprising development. A significant amount of the stolen assets, totaling $19.3 million, was recovered in government-linked wallets in the US. Analyzing the transactions through platforms like Arkham Intelligence and Lookonchain, it was observed that several transactions were made to return aUSDC, USDC, and small amounts of ETH and other tokens. This recovery accounted for almost 93% of the stolen money.
Despite the successful recovery, approximately $1.4 million worth of Ethereum and other cryptocurrencies is still missing. It is speculated that the hackers may attempt to withdraw or transfer the remaining funds in small amounts to avoid detection.
As of now, there has been no official statement from the US government regarding the return of the funds. However, blockchain intelligence companies are closely monitoring the related wallets. It is unclear whether the hackers were compelled to return the funds or if they independently decided to do so.
While the recovery of $19.3 million is a positive outcome, this incident highlights the risks associated with government-owned crypto assets. The long-term safety of such assets and the potential vulnerabilities of storing them on the blockchain are being called into question. The investigation is still ongoing, and more information may emerge in the coming weeks.