New Clues Emerge in FTX Hack Investigation
Following the recent collapse of FTX, the beleaguered crypto exchange has now fallen victim to a $475 million hack. Blockchain analytics firm Elliptic has discovered some clues that may help identify the perpetrators.
Shortly after the breach, $74 million was transferred through RenBridge, a platform associated with FTX’s sister company, Alameda Research. Out of the 4,536 bitcoins converted from ether at RenBridge, 2,849 BTC were processed through mixers like ChipMixer. These funds then mixed with assets connected to Russian criminal networks involved in ransomware and darknet marketplaces.
Possible Russian Connection
Elliptic analysts believe that a Russia-linked actor is likely responsible for the hack. They traced the stolen assets and found significant amounts mingled with funds from Russian-affiliated criminal entities before being sent to exchanges. This suggests the involvement of a broker or intermediary rooted in Russia.
The majority of the stolen funds remained dormant until just before the recent Bankman-Fried trial, where they resurfaced after being converted to Bitcoin using THORSwap. The hacker continued to bridge funds through THORChain via other venues even after THORSwap paused operations on October 6.
Laundering Strategies and Suspicions
The bridged bitcoin was then passed through Sinbad, a mixer service associated with North Korea’s Lazarus Group. However, Elliptic argues that the laundering methods used are less intricate and suggest a more probable Russian link.
Hacker Identity Remains Unknown
The identity of the hacker is still unclear according to Elliptic. Speculations range from internal involvement by FTX staff to potential implications for Bankman-Fried himself. However, Elliptic pointed out that Bankman-Fried had an alibi during a specific instance when $15 million of the stolen assets was moved via ThorChain while he was reportedly in court without internet access.
Hot Take: The Hunt for the FTX Hackers
As the investigation into the FTX hack continues, new clues have emerged pointing to a possible Russian connection. Elliptic’s analysis suggests that a Russia-linked actor may be responsible for the attack, with funds from the hack being mixed with assets connected to Russian criminal networks. However, the identity of the hacker remains unknown, leading to speculations about internal involvement or potential suspects. Despite this, there is evidence that Bankman-Fried may not be involved in the fund laundering aspect of the hack. The search for answers continues as authorities work to bring those responsible to justice.
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