Hacker Behind FTX Attack May Be Using Trial Hype to Hide Stolen Funds
The director of security operations at CertiK, Hugh Brooks, suggests that the hacker responsible for the $400 million theft from FTX and FTX US in November is using the attention around Sam Bankman-Fried’s fraud trial to further obscure the stolen funds. The hacker, known as “FTX Drainer,” started moving millions in Ether gained from the attack just days before the trial began. The movements have continued during the trial, with approximately 15,000 ETH worth about $24 million being transferred to three new wallet addresses in the last three days.
Increased Urgency to Conceal Assets
Brooks believes that with the FTX trial gaining substantial public attention and media coverage, the hacker may feel an increased urgency to hide the assets. He suggests that the hacker might have assumed that the trial would monopolize industry attention, making it difficult to trace all stolen funds while also covering the trial concurrently.
FTX’s Bankruptcy and Recovery Efforts
FTX declared bankruptcy on November 11 after employees noticed significant fund withdrawals from the exchange’s wallets. Wired’s report provides insight into how events unfolded during the attack. FTX employees discovered that the attacker had complete access to multiple wallets and transferred a large portion of remaining funds to a privately owned Ledger cold wallet while awaiting custody arrangements with BitGo. This move prevented the attacker from gaining a full $1 billion.
Evolving Methods for Obfuscating Funds
The hacker has been changing its methods for obscuring funds. Initially, they used a “peel chain” method, sending decreasing amounts of funds to new wallets. However, they have now adopted a more sophisticated approach by distributing funds stored in the original Bitcoin wallet through multiple wallets, transferring smaller divisions to additional wallets. This tactic considerably prolongs the tracing process.
Ongoing Investigations
Despite ongoing investigations, no individuals or groups behind the FTX hack have been identified yet. CertiK continues to work on uncovering more information about the incident.
Hot Take: Hacker Exploiting Trial Attention to Conceal Stolen Funds
The hacker responsible for the FTX attack appears to be leveraging the hype surrounding Sam Bankman-Fried’s fraud trial to further obfuscate the stolen funds. With attention focused on the trial, the hacker may believe that it can escape detection and recovery efforts. However, investigators are diligently working to trace the funds and identify those responsible for this significant theft. As the trial proceeds, it remains crucial to ensure that both justice is served and efforts to recover the stolen assets continue.
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