Hacker Behind FTX Hack Moves Millions in Stolen Crypto
A hacker or group of hackers responsible for the FTX hack last year has recently transferred millions of dollars’ worth of stolen cryptocurrency. According to on-chain analytics firm Lookonchain, the hacker, known as the FTX hacker, moved 22,500 Ether (ETH), equivalent to about $37 million, with 7,500 ETH transferred just on Monday.
These transfers are occurring as the former CEO and co-founder of FTX, Sam Bankman-Fried, is about to face trial for charges of fraud and money laundering. If found guilty, Bankman-Fried could be sentenced to over 100 years in prison.
One of the Biggest Crypto Heists in 2022
The FTX hack in 2022 was one of the largest crypto heists of the year, resulting in losses estimated at over $350 million. The attacker targeted FTX’s wallets shortly after Bankman-Fried filed for bankruptcy protection and left the company.
A Chainalysis report revealed that the stolen funds were initially converted from Ether to Bitcoin (BTC) using RenBridge, a decentralized cross-chain transfer protocol.
Possible Inside Job
The identity of the hacker remains unknown, but Bankman-Fried has suggested in an interview that an insider, potentially a former employee or another malicious actor, may have gained access to FTX’s crypto wallets’ private keys.
The incident prompted a US Justice Department investigation to identify the responsible individual or group. FTX’s current CEO, John J. Ray III, has admitted that the private keys for the wallets were unencrypted and lacked adequate security measures.
Hot Take: Stolen Crypto Continues to be Moved Amidst Impending Trial
The FTX hacker’s recent transfers of stolen crypto raise concerns as the trial of FTX’s former CEO approaches. With millions of dollars’ worth of ETH being moved, it remains uncertain whether the hacker will be identified and brought to justice. The FTX hack was a significant event in 2022, resulting in substantial losses for the exchange. As the investigation continues, the crypto community eagerly awaits the outcome of the trial and hopes for stronger security measures to protect against future hacks.
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