Home Blockchain Sam Bankman-Fried’s FTX Takes Another Hit as Alleged Hacker Moves Stolen ETH

Sam Bankman-Fried’s FTX Takes Another Hit as Alleged Hacker Moves Stolen ETH

by Harry Garcia

Around 2,500 ether (ETH) tied to last year’s apparent exploit of the FTX exchange has started moving, according to blockchain data. The value of these tokens is just over $4 million, which raises questions about the security measures taken by FTX and the vulnerability of cryptocurrency exchanges.

The movement of these funds has caught the attention of the crypto community and has shone a light on two privacy-focused platforms: Railgun and Thorchain. Railgun is a privacy wallet that allows users to store tokens and engage in decentralized financial services such as lending and borrowing. Transactions made through Railgun are shielded, which means the exact use of these funds remains unknown. On the other hand, Thorchain acts as a bridge that enables users to swap tokens between different blockchains.

It is worth noting that despite the movement of these funds, there is still a substantial amount of ETH, around 12,500 ETH, sitting in the original wallet. This translates to approximately $21 million at current prices. The whereabouts of these funds and the intentions behind them remain a mystery.

The FTX exchange is no stranger to controversy. John J. Ray III, the CEO and Chief Restructuring Officer of the FTX Debtors, revealed that the exchange had been hacked, resulting in the loss of $323 million in various tokens from its international exchange and $90 million from its US platform. The identity of the perpetrator(s) remains unknown. However, a few days after the hack, approximately 21,500 ETH, valued at $27 million at the time, were converted into the stablecoin DAI. Additionally, nearly 288,000 ETH remained in some of the addresses affiliated with the attacker.

Interestingly, these recent transactions coincide with the upcoming trial of Sam Bankman-Fried, the CEO of FTX. Bankman-Fried is facing fraud and conspiracy to commit fraud charges filed by federal prosecutors in December last year. While Bankman-Fried has pleaded not guilty to all charges, several former FTX and Alameda Research executives have already pleaded guilty and are expected to testify against him.

The movement of the funds from the FTX hack raises concerns about the security of cryptocurrency exchanges and the need for more robust measures to prevent such incidents. This situation also highlights the importance of privacy-focused platforms and the challenges law enforcement agencies face in tracking and recovering stolen cryptocurrency.

As the trial of Sam Bankman-Fried unfolds, the crypto community will be closely watching to see how this case develops and its implications for the future of cryptocurrency exchanges and regulations surrounding them.

UPDATE (Sept. 29, 13:42 UTC): An earlier version incorrectly said the THORChain protocol masks addresses.

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