LEO Token Premium May Signal Progress in Bitfinex Hack Case

The market value of Bitfinex's LEO token has reached a premium, indicating potential progress in the long-running legal process surrounding bitcoin seized from the 2016 hack.

According to K33 Head of Research Vetle Lunde, the elevated valuation of LEO may signal that the market expects resolution in the case. The U.S. government's Strategic Bitcoin Reserve holds approximately 30% of its total assets in frozen coins linked to the hack.

The LEO token is directly tied to the seized bitcoin, as Bitfinex has committed to using 80% of any recovered coins to repurchase and burn the token. If the bitcoin is returned to victims, it could lead to a moderate increase in market supply.