Update on Stolen Cryptocurrency from FTX Exchange Crash
There have been new developments in the trial involving Sam Bankman-Fried, and it has been revealed that the individual who stole $470 million worth of cryptocurrency from the FTX exchange crash is now attempting to convert it into regular currency. What’s surprising is that after remaining inactive for nine months, they are estimated to be converting around $20 million worth of stolen cryptocurrency into cash every day.
The Conversion Process
A portion of the stolen cryptocurrency, specifically $120 million worth of Ethereum, has been traded for Bitcoin on the multichain decentralized exchange THORSwap since September 30, 2023. The thief attempted to launder the funds by using decentralized exchanges, cross-chain bridges, and mixers. Interestingly, $74 million was funneled through RenBridge, which is affiliated with Alameda Research, a sister company of FTX.
Recent Activity and Trial Commencement
An analysis conducted by Elliptic reveals that approximately 72,500 Ether from the stolen assets has recently become active. The first conversions occurred just days before Sam Bankman-Fried’s trial began on October 3. At the time of the initial theft, this converted amount was valued at $87 million, which accounted for about 18% of the total stolen amount.
Elliptic reported, “The 180,000 ETH that was not converted to Bitcoin through RenBridge remained dormant until the early hours of Sep. 30, 2023 — by which time it was worth $300 million.”
Strategy and Composition of Stolen Cryptocurrency
The hacker responsible for the FTX breach seems to be following a similar strategy. They converted 65,000 ETH, equivalent to $100 million, into Bitcoin using RenBridge. It’s important to note that a significant portion of the stolen cryptocurrency, approximately $434 million, consisted of stablecoins and other tokens.
Unidentified Culprit
Despite almost a year passing since the theft from FTX, the person behind the act remains unidentified. The incident occurred in November 2022 during the exchange’s bankruptcy proceedings.
Hot Take: Stolen Cryptocurrency Conversion Continues Amid Trial
The ongoing trial involving Sam Bankman-Fried has shed light on the attempts made by the individual who stole $470 million worth of cryptocurrency from the FTX exchange crash. Surprisingly, after lying dormant for months, they are now converting around $20 million worth of stolen assets into cash every day. Recent activity reveals that a portion of the stolen Ethereum has been traded for Bitcoin, with notable involvement from RenBridge. Despite significant conversions and active movements of the stolen funds, the identity of the hacker remains unknown even after almost a year since the heist took place.
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