'Blockchain Bandit' reawakens: $90M in stolen crypto seen shifting

A hacker dubbed the “Blockchain Bandit” has lastly woken from a six-year slumber and has began to maneuver their ill-gotten good points.

Based on Chainalysis, round $90 million in crypto pilfered from the attacker’s long-running string of “programmatic theft” since 2016 has began transferring over the previous week.

Related articles

Binance upgrades Proof of Reserves verification to include zk-SNARKs

2023-03-15

The history of mining: From the stone age to the digital era

2023-02-10

This included 51,000 Ether (ETH) and 470 Bitcoin (BTC) — value a complete of round $90 million — leaving the bandit’s handle for a brand new one. Chainalysis famous:

“We suspect that the bandit is transferring their funds given the current bounce in costs.”

The hacker was dubbed the “Blockchain Bandit” as a consequence of with the ability to empty Ethereum wallets protected with weak non-public keys in a course of termed “Ethercombing.”

The attacker’s “programmatic theft” course of has drained greater than 10,000 wallets from people throughout the globe for the reason that first assaults have been perpetrated six years in the past.

1/ $90M stolen funds on the transfer: After 6 years of hodling, the “Blockchain Bandit” has awoken. On this we cowl how the Blockchain Bandit amassed this treasure trove and the place the funds are at the moment held.

— Chainalysis (@chainalysis) January 25, 2023

In 2019, Cointelegraph reported that the Blockchain Bandit managed to amass virtually 45,000 ETH by efficiently guessing these frail non-public keys.

A safety analyst mentioned he found the hacker accidentally whereas researching non-public key technology. He famous on the time that the hacker had arrange a node to robotically filch funds from addresses with weak keys.

The researchers recognized 732 weak non-public keys related to a complete of 49,060 transactions. It’s unclear what number of of these have been exploited by the bandit, nonetheless.

“There was a man who had an handle who was going round and siphoning cash from a number of the keys we had entry to,” he mentioned on the time.

Chainalysis produced a diagram depicting the move of the funds, nonetheless, it didn’t specify the goal handle, solely labeling them as “middleman addresses.”

To keep away from having weak non-public keys, Chainalysis suggested customers to make use of well-known and trusted wallets and contemplate transferring funds to {hardware} wallets if massive quantities of cryptocurrency are concerned.

Associated: Hackers maintaining stolen crypto: What’s the long-term answer?

Additionally in 2019, a pc researcher found a pockets vulnerability that issued the identical key pairs to a number of customers.