Anonymous hackers associated with the now-defunct cryptocurrency exchange FTX have sprung into action, moving significant amounts of assets stolen from the platform. These developments have unfolded just as the trial of FTX founder Sam Bankman-Fried (SBF) gets underway, casting a shadow over the already enigmatic case.
According to reports from blockchain analytics firm Elliptic on October 12, the thieves have reactivated as much as 72,500 Ether (ETH), valued at $1,544 per ETH. These stolen assets had remained dormant since the exchange’s hacking incident in November 2022.
Conversion to Bitcoin Through THORSwap
The most striking revelation is that the thief has converted a staggering $120 million worth of ETH into Bitcoin (BTC) through the multichain decentralized exchange (DEX) known as THORSwap, starting from September 30, 2023. These transactions began just days before Bankman-Fried’s trial kicked off on October 3. At the time of the hack, this converted amount represented 18% of the total stolen funds, which amounted to $477 million.
The FTX hacker appears to have applied a money laundering technique similar to the one deployed in the initial hack, where they transferred 65,000 ETH (worth $100 million at the time) into BTC using the cross-chain bridge RenBridge.
Notably, even after almost a year since the hack, the identity of the FTX thief remains shrouded in mystery. Elliptic has raised three potential culprits: an inside job by someone at FTX, the involvement of North Korea’s Lazarus Group, or connections to Russia-linked criminal organizations.
The report speculates that FTX employees might have had access to the exchange’s crypto assets, allowing for their movement due to operational reasons. The chaos surrounding FTX’s bankruptcy and collapse could have created an opportunity for an insider to seize these assets.
This latest twist in the FTX saga only adds to the intrigue, as the cryptocurrency world watches closely to see how the trial of Sam Bankman-Fried unfolds.