FTX Hack: Stolen Crypto Assets on the Move
Blockchain data reveals that the hacker responsible for the FTX cryptocurrency hack in November 2022 has started moving millions of dollars’ worth of stolen crypto assets. This comes after FTX declared bankruptcy and its founder, Sam Bankman-Fried, stepped down as CEO.
Stolen ETH Traced to FTX Hack
According to blockchain intelligence platform Arkham, the hacker, who holds approximately $300 million in crypto assets, has moved a significant amount of stolen ETH. This is the first time these assets have been moved since the hack. The hacker used RailGun and ThorChain to move around $8 million worth of ETH.
The hacker’s wallet, known as “FTX Exploiter,” also holds various other cryptocurrencies such as DAI, Tether, USDC, Binance Coin, Bitcoin, and Wrapped Bitcoin.
Moving ETH Wallets Split into Transactions
The ETH wallets, which had remained dormant for almost a year, were split into two and further divided in subsequent transactions. The hacker transferred around 700 ETH using ThorChain Router and another 1200 ETH through RailGun. An intermediate wallet held an additional 550 ETH. The original wallet still contains around 12,500 ETH worth $21 million.
The FTX Hack
The FTX hack took place on November 11, 2022, just hours after the exchange filed for bankruptcy and Sam Bankman-Fried resigned. The attacker drained accounts linked to FTX and FTX US, stealing approximately $600 million worth of ETH. FTX general counsel Ryne Miller warned users about the hack and advised against visiting the FTX site due to potential malware downloads.
The hacker consolidated the stolen crypto assets into ETH, becoming one of the largest Ethereum whales. The CEO of FTX Debtors, John J. Ray III, confirmed that around $323 million worth of crypto was stolen from FTX and $90 million from its US platform.
Hacker’s Identity Unknown
The hacker remains unidentified, and the movement of funds coincides with Sam Bankman-Fried’s upcoming trial in the US. Bankman-Fried has been charged with fraud and conspiracy to commit fraud, but he has pleaded not guilty. Other executives from his crypto empire have pleaded guilty and are expected to testify against him.
Hot Take: FTX Hack Highlights Ongoing Challenges in Crypto Security
The recent movement of stolen crypto assets from the FTX hack serves as a reminder of the persistent security challenges faced by the cryptocurrency industry. Despite efforts to enhance security measures, hackers continue to find vulnerabilities and exploit them for significant financial gain.
This incident also underscores the importance of regulatory frameworks to deter and prosecute cybercriminals in the crypto space. As high-profile cases like this go to trial, it will be crucial to examine how authorities can hold bad actors accountable and establish stronger safeguards for investors and users.
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