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PARAGRAPHUS officials said on Tuesday the recovered sum was linked to the hack of Bitfinex, a virtual lichtensteon exchange whose on the US east coast when it used encryption software called DarkSide to launch a cyber attack on the Colonial.

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That is until Thursday, when tech entrepreneur Ilya �Dutch� Lichtenstein admitted in federal court to hacking Bitfinex seven years ago. As reported by CNBC, Ilya �Dutch� Lichtenstein, 34, made the admission while pleading guilty to laundering a portion of the stolen funds. A few days later, the news broke that she, along with Lichtenstein, had been arrested and charged with possessing $ billion in stolen Bitcoin.

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When they attempted to open seven new accounts on one exchange using fake identities, the exchange could not verify the accounts, and froze their funds. Exchanges are vulnerable because they often maintain escrow accounts holding coins in so-called hot wallets, which are connected to the Internet. Until Thursday's admission in court by Lichtenstein, it was not publicly known who had hacked the bitcoin from the cryptocurrency exchange Bitfinex. Last year, Tom Robinson, who is the chief scientist at the blockchain-analytics firm Elliptic, explained to me the appeal of this kind of crime.