Does crypto need oversight? US Government returns stolen bitcoins to Bitfinex

It has always been a debate among crypto enthusiasts on whether the industry needs regulatory oversight to achieve its full potential or is better off without such measures.

Well, a new report from Hong Kong-based cryptocurrency exchange, Bitfinex, seems to suggest that the latter would be a more acceptable approach than the former.

According to a blog post by the exchange today, it received a total of 27.66270285 BTC ($104,900) from the U.S. government following spells of the investigation into the 2016 major hack which saw a total of 119,756 BTC stolen from the exchange.

Bitfinex, Chief Financial Officer, Giancarlo Devasini, said in the Monday announcement,

Over two years following the hack of the Bitfinex platform, today we see the results of a clear and robust response strategy and the efforts of the U.S. government. It gives us great pleasure to be able to reimburse our traders that were loyal to us and believed in us at a very difficult time.

Bitfinex is now set to share the retrieved funds with users on its platform who hold units of the Recovery Rights Token (RRT) that it issued in the aftermath of the 2016 hack.

The sad reality is that it is becoming difficult to keep tabs on the number of hack on cryptocurrency exchanges and defrauding of unsuspecting investors.

The presence of regulation in the industry will undoubtedly provide some relief if not reduce the rate of these ugly incidents to a large extent.

In a similar development to Bitfinex’s, Coinfomania reported earlier this month that the New Zealand police is recording excellent progress in its quest to recover a mysteriously huge amount of money stolen from crypto exchange, Cryptopia.

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