An Attacker on FTX Changes Bitcoin (BTC) in a Most Malevolent Way

An Attacker on FTX Changes Bitcoin (BTC) in a Most Malevolent Way

Jan 17 Tech Standard

The FTX attacker has made waves once again with a surprising update. This time, they moved $12 million in Bitcoin (BTC) in what can only be characterized as a malicious move.

FTX attacker’s crypto mixer tactics

The most recent update on X was made public by blockchain analysis company Arkham Intelligence, which alarmed the cryptocurrency community. As per Arkham's report, the perpetrator is anticipated to transfer the monies into cryptocurrency mixers, an approach that complicates the tracking of assets acquired through illegal means.

According to Arkham Intelligence, the attacker mingled more than $600 million worth of Bitcoin during the most recent transfer on January 6. Only 1.5 BTC remained at the moment after nearly all of the stolen Bitcoin was moved out of the attacker's verified accounts.

The use of cryptocurrency mixers gives illegal transactions an extra degree of secrecy, making it difficult for law enforcement and blockchain experts to determine where the money originated from and went. The use of this technique by the attacker raises questions regarding the growing sophistication of bad actors in the crypto space.

Cross-chain swaps and Thorchain

The FTX attacker is said to have used Thorchain, a decentralized exchange that enables cross-chain swaps, to move almost $8 million in Ethereum (ETH) to Bitcoin in an earlier instance that was reported last year. The hacker's ability to convert the ETH holdings into BTC via this way demonstrated the depth of their strategy.

For those who do not know, on November 11th, FTX experienced a significant security breach that led to unapproved withdrawals of almost $600 million. Because the incident happened soon after the company filed for bankruptcy protection and founder Sam Bankman-Fried resigned as CEO, there were concerns that it was an inside job.

The FTX attacker's protracted drama brings to light the difficulties the cryptocurrency industry has in thwarting sophisticated attacks. Cross-chain swaps and cryptocurrency mixers make it more difficult to detect illegal transactions, which emphasizes the need for stronger security protocols and legal frameworks in the cryptocurrency industry.



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