The FTX Hacker Shifts Strategy for Laundering Stolen Ethereum
The individual responsible for the 2022 attack on FTX has changed their approach to laundering the stolen Ethereum. According to on-chain analyst Lookonchain, the hacker has transitioned from using THORChain to exploiting the Threshold Network. This shift was observed on Oct. 6.
Lookonchain’s data reveals that the attacker has converted over 3,000 ETH (worth $4.9 million) into tBTC via the Threshold Network. Furthermore, they have successfully converted approximately 75,636 ETH (worth $124 million) into Bitcoin, while still holding another 109,485 ETH (worth about $180 million).
FTX decided to put its platform on hold after internal discussions and guidance from legal and law enforcement entities. It will remain inactive until a robust safety solution is implemented.
Before THORChain went into maintenance, the hacker had moved at least $38 million worth of ETH through it and Railgun, a privacy-protecting platform.
Initially estimated at up to $400 million, FTX revised its losses to around $323 million due to the hack.
The identity of the perpetrator remains unknown. However, speculation within the crypto community has implicated FTX founder Sam Bankman-Fried, who is currently facing trial for wire fraud and conspiracy to commit money laundering. Bankman-Fried vehemently denies any involvement in the theft. Nonetheless, the movement of stolen funds during his trial has reignited suspicions of insider involvement.
Hot Take: The FTX Hacker Adapts Tactics for Laundering Stolen Ethereum
The hacker behind the 2022 attack on FTX has shown flexibility and resourcefulness by shifting their strategy for laundering stolen Ethereum. By leveraging the Threshold Network instead of THORChain, they have managed to convert significant amounts of ETH into Bitcoin, while still holding a substantial sum in their wallet.
FTX’s decision to suspend its platform reflects the seriousness of the situation and the need for a comprehensive security solution. The hacker’s ability to exploit multiple platforms highlights the challenges faced by crypto exchanges in preventing such attacks.
The ongoing trial of FTX founder Sam Bankman-Fried adds an intriguing layer to the story. While he denies involvement in the theft, the timing of the fund movements raises suspicions among some community members. As the investigation continues, it remains to be seen if any definitive evidence will emerge linking Bankman-Fried or uncovering the true identity of the hacker.
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