The individual behind 2022 attack on FTX changed their strategy for laundering stolen Ethereum to Bitcoin
Introduction
The individual behind the 2022 attack on FTX changed their strategy for laundering the stolen Ethereum to Bitcoin.
Change in Strategy
On October 6, the chain analyst Lookonchain noticed that the person behind last year’s FTX hack has stopped using Thorshin for moving their stolen assets. Instead, they began exploiting the Threshold network.
Transfer Details
According to Lookonchain data, the attacker transferred around 3,000 Ethereum (ETH), worth $4.9 million, into tBTC via the Threshold network. Since then, the attacker has successfully converted approximately 75,636 ETH, worth $124 million, into Bitcoin. Additionally, another 109,485 ETH worth approximately $180 million remains in their wallet.
Threshold Network
Threshold is a decentralized channel between the Bitcoin (BTC) and Ethereum blockchains, allowing users to convert their holdings to ERC-20 token tBTC, which is pegged at a ratio of 1:1 with Bitcoin.
THORSwap Maintenance
Reports suggest that the attacker previously preferred THORSwap but had to change their strategy after THORSwap entered maintenance on October 6 to prevent any possible additional illegal activities.
FTX Scalper’s Transfers
Before THORChain maintenance, the FTX scalper reportedly transferred at least $38 million worth of ETH through THORSwap and the Railgun privacy protection platform.
Reassessed Losses
Originally, damage estimates from the hack were thought to be limited up to $400 million. However, FTX reassessed the situation and reported losses approaching $323 million.
Identity of the Culprit
The identity of the culprit behind the attack is still surrounded in uncertainty. However, speculation within the crypto community has pointed the finger at controversial FTX founder Sam Bankman Fried, who is currently on trial for wire fraud and conspiracy to commit money laundering.
Conclusion
While Bankman Fried has refuted claims of his involvement in the theft, the movement of stolen money in sync with his trial has raised speculation again that an insider was involved.
