FTX Hacker Abruptly Begins Moving Millions Worth Of Stolen ETH

FTX Hacker Abruptly Begins Moving Millions Worth Of Stolen ETH

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According to blockchain data, the bad actor who hacked cryptocurrency FTX in the middle of its collapse has abruptly started moving millions worth of stolen crypto assets early on Saturday. 

FTX was hacked in November 2022, hours after it declared bankruptcy, and founder Sam Bankman-Fried stepped down from his position as CEO. 

Stolen ETH Linked To FTX On The Move 

According to data from blockchain intelligence platform Arkham, the hacker, who holds around $300 million in crypto assets, has moved considerable quantities of ETH stolen during the FTX hack in 2022. This marks the first time the assets have been on the move since they were stolen. Arkham stated that around $8 million worth of ETH was moved using the smart contract system RailGun (RAIL) and then through the decentralized exchange protocol ThorChain (RUNE). 

According to data from Arkham, the wallet known as “FTX Exploiter” holds around $1.7 million worth of DAI (DAI), $3.97 million worth of Tether (USDT), $30,000 worth of USDC, and around $43,000 worth of Binance Coin (BNB). The wallet also held around $42,000 worth of Bitcoin (BTC) and $8500 worth of Wrapped Bitcoin (wBTC). 

The ETH wallets, moving for the first time in nearly a year, were split into two and then further in subsequent transactions. The hacker transferred around 700 ETH using the ThorChain Router, while a further 1200 ETH were being moved through RailGun, and another 550 ETH were held in an intermediate wallet. 

Railgun is a privacy wallet that allows users to store tokens and funds for decentralized financial services such as lending and borrowing. The transactions are shielded, meaning the funds’ exact use is unknown to those not party to the transactions. ThorChain, on the other hand, is a bridge that enables users to swap tokens between different blockchains. The original wallet still holds around 12,500 ETH, worth $21 million. 

The FTX Hack 

The FTX hack occurred on the 11th of November, 2022, when accounts linked to FTX and FTX US were drained. The hack occurred just hours after the cryptocurrency exchange filed for bankruptcy and founder Sam Bankman-Fried resigned from his crypto empire. The hack saw the attacker steal around $600 million worth of ETH, crippling the exchange. At the time of the hack, FTX general counsel Ryne Miller released a statement informing traders about the hack and warned users that the exchange had been infected with malware. 

“FTX has been hacked. Chat is open. Please don’t go to the FTX site, as it might download Trojans. Note that some funds were retrieved.” 

Shortly after the attack, it was revealed that the hacker had become one of the biggest Ethereum whales in the world after consolidating all the stolen crypto into ETH. Data sourced from Etherscan showed that the wallet “FTX Accounts Drainer” was the 35th largest Ethereum wallet in the world. 

John J. Ray III, the current CEO and Chief Restructuring Officer at FTX Debtors, which is handling the FTX bankruptcy proceedings, revealed that around $323 million worth of crypto was stolen from FTX, while around $90 million was stolen from its US platform. 

Hacker Never Identified 

The hacker who pulled off the heist was never identified. The movement of the funds also comes days before Sam Bankman-Fried goes on trial in the US. The FTX founder faces fraud charges and conspiracy to commit fraud filed by federal prosecutors. Bankman-Fried has pleaded not guilty to all charges. However, other executives from his crypto empire and Alameda Research have pleaded guilty and are expected to testify against their former boss.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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