FTX Hackers Make Moves with Stolen Funds
A year after the FTX exchange was hacked, resulting in the loss of over $600 million worth of ether (ETH), there has been recent activity involving some of the stolen funds. Spot On Chain, a blockchain data analysis platform, reported that approximately 2,500 ETH, valued at more than $4 million, were transferred from a wallet linked to the FTX accounts drainer on Saturday, 30 September.
FTX Hackers’ Stealthy Moves
The funds were not simply transferred by the hackers to another wallet. Instead, they employed various privacy tools to conceal their actions and potentially gain access to decentralized financial services (DeFi). The 2,500 ETH was divided into two portions and subsequently subjected to multiple transactions.
Approximately 700 ETH were transferred through the Thorchain Router, which serves as a bridge enabling users to exchange tokens across different blockchains while maintaining wallet anonymity. Another 1,200 ETH went through the Railgun privacy wallet—a platform that enables token storage and facilitates DeFi activities such as lending and borrowing.
These transactions are shielded from public view, making it challenging to determine how exactly these funds are being used. Meanwhile, the remaining 550 ETH remains in an intermediary wallet. It’s important to note that there is still a significant amount of funds—12,500 ETH valued at approximately $21 million based on current prices—remaining in the original wallet.
FTX Hack: A Brief Recap
On November 11, 2022, shortly after filing for bankruptcy and the resignation of founder Sam Bankman-Fried, the FTX hack took place. During this incident, an unknown attacker(s) managed to acquire over $600 million worth of ether.
The then FTX general counsel, Ryne Miller, mentioned in a now-deleted tweet that precautionary measures were being taken to secure funds from other FTX wallets. Following the breach, approximately 21,500 ETH (valued at $27 million at that time) were converted into the stablecoin DAI several days later.
Notably, around 288,000 ETH remain within addresses associated with the attacker(s). This hack ranked among one of the most significant cryptocurrency thefts ever recorded and raised concerns regarding security and regulation within crypto exchanges and DeFi platforms as well.
Moreover, recent movement of funds by the hackers suggests their ongoing activity as they potentially seek means to cash out or use their stolen assets.
Hot Take: Stolen Funds from FTX Hack Still Active
A year after the FTX exchange was hacked and millions of dollars worth of ether stolen, recent activity involving some of the stolen funds has been observed. The hackers have employed various privacy tools to conceal their actions and gain access to decentralized financial services. Approximately $4 million worth of ETH has been transferred through different platforms, making it challenging to track how these funds are being used. Despite this movement, a significant amount of funds still remains in the original wallet. The FTX hack remains one of the largest cryptocurrency thefts ever recorded and raises concerns about security in crypto exchanges and DeFi platforms.
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