FTX Hacker Receives Tips On How To Launder $400 Million Loot

Abstract:

• Coinbase Director Conor Grogan noticed Ether transfers to the “FTX Accounts Drainer” with non-public notes on find out how to transfer the property undetected.
• The hacker was suggested to leverage much less well-liked and extra privacy-based crypto mixer protocols.
• The U.S. Justice Division launched an investigation into the matter after practically $400 million was stolen from Sam Bankman-Fried’s bankrupt crypto alternate. 

In a weird flip of occasions, the FTX hacker who drained roughly $400 million in digital property from Sam Bankman-Fried’s crypto alternate acquired recommendations on find out how to launder the stolen funds utilizing mixing protocols. 

Coinbase Director Conor Grogan observed Ether (ETH) transfers to the pockets labeled “FTX Account Drainer” on the block explorer Etherscan. The transaction carried a message directing the hacker on find out how to launder their huge lot. 

Within the textual content, the sender urged utilizing extra privacy-focused crypto mixing providers fairly than well-liked protocols like ChipMixer. Crypto mixers permit customers to obfuscate their transactions when transferring property round and are a typical device utilized by crypto criminals making an attempt to launder their illicit wealth. 

The sender additionally supplied to share extra info with the hacker on appropriate crypto mixers, offering their telegram username ought to the hacker want to contact them. Director Grogan likened the try to a gross sales chilly name. 

Notably, the sender additionally registered a peculiar Ethereum Identify Service (ENS) handle with extra directions for the hacker to contemplate – *swap-gray-crypto-for-white-stablecoins-check-input-data-utf8.eth”

FTX Hack Investigated By Justice Division

The U.S. Division of Justice launched investigations right into a $400 million hack on FTX, as beforehand reported in later December 2022. Led by the DoJ’s Nationwide Cryptocurrency Enforcement Workforce, authorities mentioned the prison investigation would probe the id of the hacker or hackers who drained Bitcoin (BTC), Ether (ETH), and different digital property from SBF’s crypto alternate shortly after the corporate declared chapter on November 12.

Disgraced Founder Sam Bankman-Fried denied ties to the hack on a number of events, claiming he didn’t “stash away tens of millions and billions in crypto” in his newest “Pre-mortem” evaluation on Substack. 

Other than eight prison prices slammed in opposition to Bankman-Fried by U.S. authorities, federal prosecutors are additionally investigating SBF’s ‘inside circle’ together with ex-CTO Gary Wang and former Alameda Analysis CEO Caroline Ellison. Each Ellison and Wang already flipped on Bankman-Fried, pleading responsible to fraud in alternate for plea offers. 

Prosecutors additionally met with FTX’s former chief engineer Nishad Singh to weigh his info concerning the crypto alternate’s multi-billion crash in 2022.