FTX, a major cryptocurrency exchange, filed for bankruptcy on November 11, 2022, after being hacked for $477 million. The majority of the stolen funds, primarily in ether (ETH), remained inactive for five days before a substantial sum of 65,000 ETH (equivalent to $100 million) was moved to the Bitcoin Blockchain. The attackers then used a mixer to convert 4,536 Bitcoins from Ether, with around 2,849 BTC being sent through the ChipMixer service. Approximately $4 million of the stolen funds made its way to Crypto Exchanges.
Blockchain intelligence firm Elliptic has suggested that there may be a Russian connection to the FTX heist. The pilfered assets, traceable through ChipMixer, appear to be mixed with funds from Russian-affiliated criminal organizations, such as ransomware collectives and darknet markets. This suggests the involvement of an intermediary, possibly with ties to Russia.
Elliptic also raised suspicions regarding FTX employees who had access to the exchange’s crypto assets. Given the chaotic circumstances surrounding FTX’s bankruptcy and downfall, it is possible that an insider could have stolen the assets. However, Elliptic acknowledges that FTX’s founder, Sam Bankman-Fried, who is also under suspicion, had limited internet access that would have hindered any laundering attempts.
The lax security practices of FTX may have also facilitated the theft. The new CEO revealed that private keys granting access to the company’s crypto assets were stored without encryption, and there have been reports of inadequate security measures in the past.
The involvement of the Sinbad mixer in the laundering process could potentially suggest the involvement of North Korea’s Lazarus Group, known for large digital asset heists. However, the laundering methods used in this case are less sophisticated compared to Lazarus Group’s typical tactics.
It is worth noting that a significant portion of the stolen funds remained inactive for several months before becoming active shortly before the start of Sam Bankman-Fried’s trial. This contrasts with the usual behavior of crypto money launderers who often wait for years to transfer and liquidate their assets once public interest has waned.
Overall, the FTX heist reveals the need for stronger security measures within the cryptocurrency industry to prevent such large-scale thefts. Additionally, the involvement of a Russian connection and potential insider involvement highlights the need for increased vigilance and scrutiny within cryptocurrency exchanges and organizations..
#Russian #Link #Suspected #FTXs #Million #Cryptocurrency #Heist #Report
Blockchain intelligence firm Elliptic has suggested that there may be a Russian connection to the FTX heist. The pilfered assets, traceable through ChipMixer, appear to be mixed with funds from Russian-affiliated criminal organizations, such as ransomware collectives and darknet markets. This suggests the involvement of an intermediary, possibly with ties to Russia.
Elliptic also raised suspicions regarding FTX employees who had access to the exchange’s crypto assets. Given the chaotic circumstances surrounding FTX’s bankruptcy and downfall, it is possible that an insider could have stolen the assets. However, Elliptic acknowledges that FTX’s founder, Sam Bankman-Fried, who is also under suspicion, had limited internet access that would have hindered any laundering attempts.
The lax security practices of FTX may have also facilitated the theft. The new CEO revealed that private keys granting access to the company’s crypto assets were stored without encryption, and there have been reports of inadequate security measures in the past.
The involvement of the Sinbad mixer in the laundering process could potentially suggest the involvement of North Korea’s Lazarus Group, known for large digital asset heists. However, the laundering methods used in this case are less sophisticated compared to Lazarus Group’s typical tactics.
It is worth noting that a significant portion of the stolen funds remained inactive for several months before becoming active shortly before the start of Sam Bankman-Fried’s trial. This contrasts with the usual behavior of crypto money launderers who often wait for years to transfer and liquidate their assets once public interest has waned.
Overall, the FTX heist reveals the need for stronger security measures within the cryptocurrency industry to prevent such large-scale thefts. Additionally, the involvement of a Russian connection and potential insider involvement highlights the need for increased vigilance and scrutiny within cryptocurrency exchanges and organizations..
#Russian #Link #Suspected #FTXs #Million #Cryptocurrency #Heist #Report
