FTX Hackers Activate Stolen Assets Amid Founder's Trial: Cryptocurrency Conversion Uncovered
Summary:
In conjunction with the ongoing trial of FTX founder Sam Bankman-Fried, cyber criminals from the now-defunct exchange FTX have started relocating large amounts of stolen assets. As per blockchain investigation firm Elliptic, they have converted $120 million worth of stolen Ether (ETH) into Bitcoin (BTC) through THORSwap since September 30, 2023. At the time of the hack, the converted sum was worth $87 million. A year post-hack, the identity of the thief remains unknown, with possible suspects including a rogue FTX employee, North Korea's Lazarus Group, or a Russian criminal group.
Cyber criminals behind the defunct crypto exchange FTX, have begun to shift massive volumes of illegally obtained funds as the court proceedings of Sam Bankman-Fried, the company's founder, take off. Blockchain investigation company, Elliptic, stated on October 12th that over 72,500 Ether (ETH) looted from FTX has recently become active for the first time post the hacking incident in November 2022.
Elliptic has highlighted that the perpetrator has now converted $120 million of ETH into Bitcoin (BTC) through THORSwap, a multi-chain decentralized exchange (DEX), beginning from September 30, 2023. The inaugural conversion transactions coincidentally occurred a few days before the commencement of Bankman-Fried’s trail on October 3.
At the time of the breach, the transformed sum was estimated around $87 million, accounting for 18% of the total stolen funds equating to $477 million. The FTX intruder applied a laundering strategy resembling the one used immediately post the hacking incident when the offender transferred 65,000 ETH (roughly $100,000) into BTC through RenBridge, a cross-chain bridge, in November the previous year.
The remaining 180,000 ETH, which was not exchanged via RenBridge into Bitcoin, stayed inactive until the dawn of September 30, 2023. At that time, it was valued around $300 million, Elliptic stated in its fresh report. As per Elliptic, in the following days of the hack, the hacker incurred a loss of $94 million as the criminal endeavored to launder the stolen capital through decentralized exchanges, cross-chain bridges, and mixers.
Nearly a year post the cyber-attack, the identity of the criminal behind the FTX hacking incident remains a mystery, Elliptic mentioned. The firm has hypothesized three potential suspects for the heist, which includes an internal conspiracy at FTX, North Korea's Lazarus Group, or a crime syndicate based in Russia.
Elliptic's report read, "Given the business operations, some employees at FTX would have been authorized to handle the company's crypto assets. During the tumultuous times surrounding the firm's insolvency and slump, it might have been plausible for an insider to misappropriate these assets.
Published At
10/12/2023 2:31:08 PM
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