According to blockchain analysis firm Chainalysis, funds stolen from crypto exchange FTX are now being converted from ETH to Bitcoin. On Nov. 20, Chainalysis took to Twitter to encourage the exchange to freeze those coins should the thief attempt to convert them to fiat or otherwise further obfuscate the assets.
1/ Funds stolen from FTX are on the move and exchanges should be on high alert to freeze them if the hacker tries to withdraw them
— chain analysis (@chain analysis) November 20, 2022
Amid the controversial collapse and bankruptcy of FTX, it was revealed that an unknown actor had stolen 228,523 ETH from the exchange. Owning these coins, worth a whopping $268,057,479 at the time of publication, makes the thief one of the largest holders of ETH in the world right now.
Update: FTX hacker is now actively throwing ETH on the chain
He spent about $15 million ETH in the last 30 minutes and just prepared a new batch of $12 million
Still has $270 million ETH in main wallet
He sells ETH to wBTC to renBTC via aggregators like 1inch https://t.co/mEd8UHFCO0
— kamikaz ΞTH (@kamikaz_ETH) November 20, 2022
Although initial reports suggested that all of the funds in question could be in the custody of securities regulators in the Bahamas, Chainalysis threw cold water on this theory, stating:
“Reports that funds stolen from FTX were actually sent to the Securities Commission of the Bahamas are false. Some funds were stolen and other funds were sent to regulators.”
At the time of publication, around 31,000 ETH had been converted into wrapped BTC. The thief then sent the coins cross-chain to a Bitcoin mainnet wallet via the Ren protocol, with the final amount totaling 2444.55 BTC.
LIVE: FTX Drainer (Aka Bahamas Gov?) liquidates ETH
Addi #1 – 0x59
Addy #2 – 0x86river so far
– Move $ETH from 1 to 2
– swap $ETH to the $renBTC
– Send it to NULL AddyTo update
– Sold 31k $ETH for 2.2k $renBTC
– Send all $renBTC to NULL address (ETH Genesis address)1/n pic.twitter.com/WfkXGsUDRq
— Garlam (@GarlamWON) November 20, 2022
It’s been a tough few weeks for those affected by the collapse of FTX and its affiliates. A press release earlier this morning indicated that FTX debtors are in talks with Finserv firm Perella Weinberg Partners regarding various restructuring attempts. However, the engagement is subject to the approval of the bankruptcy court.
Meanwhile, company founder Sam Bankman-Fried is reportedly staying “under surveillance” in the Bahamas, although some fear he may attempt to flee to Dubai if the opportunity presents itself. It is unclear how this situation would ultimately develop as the United Arab Emirates and the US have an agreement on sharing evidence, judicial cooperation and assistance in criminal investigations and prosecutions.