THORSwap

Ethereum

Bitcoin

THORChain

Threshold

<p class="is-style-lead">The individual behind the 2022 attack on FTX has altered their strategy for laundering their stolen Ethereum into Bitcoin.</p>
<p>On-chain analyst Lookonchain noticed on Oct. 6 that the person behind last year’s FTX <a href="https://crypto.news/ftx-investigates-415m-crypto-theft-while-sbf-claims-companys-solvency/" target="_blank" rel="noopener noreferrer nofollow">hack</a> had stopped using THORChain for moving their stolen assets and had begun to exploit the Threshold Network instead.</p>
<p>Lookonchain’s data indicated that the attacker converted over 3,000 Ether (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>), valued at $4.9 million, into tBTC via the Threshold network. Since then, per Lookonchain, the attacker has successfully converted about 75,636 ETH, valued at $124 million, into Bitcoin, while another 109,485 ETH, valued at approximately $180 million, remains in their wallet.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">After <a href="https://twitter.com/THORSwap?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@THORSwap</a> suspended swaps, FTX Exploiter started swapping <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a> for <a href="https://twitter.com/search?q=%24tBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$tBTC</a> and cross-chained to the Bitcoin network through <a href="https://twitter.com/TheTNetwork?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@TheTNetwork</a>.<br><br>So far, FTX Exploiter has swapped 75,636 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($124M) for BTC assets and cross-chained to the Bitcoin network. <a href="https://t.co/ksIPBzRJ0d" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/ksIPBzRJ0d</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1710243734162412023?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 6, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Threshold is a decentralized conduit between the Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) and Ethereum blockchains that allows users to convert their holdings into an ERC-20 token, tBTC, pegged 1:1 with Bitcoin.</p>
<p>You might also like: <a href="https://crypto.news/ftx-hacker-moves-4-2m-worth-of-eth-after-months-of-inactivity/" rel="noopener noreferrer nofollow"> FTX hacker moves $4.2m worth of ETH after months of inactivity </a></p>
<p>According to reports, the attacker had previously preferred THORSwap, but it entered <a href="https://crypto.news/thorswap-enters-maintenance-mode-to-curb-illicit-flow-of-funds/" target="_blank" rel="noopener noreferrer nofollow">maintenance</a> mode on Oct. 6 in order to stop any additional potential illegal activities.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Fellow THORChads,<br><br>A pressing and persistent concern has recently come to light: the potential movement of illicit funds through THORChain and, specifically, THORSwap. Such activities have no place on the THORSwap platform, and THORSwap stands firmly against any and all criminal…</p>— THORSwap ⚡ #BetterThanCEX (@THORSwap) <a href="https://twitter.com/THORSwap/status/1710162462639575065?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 6, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>The decision reportedly came after extensive internal discussions and advice from legal and law enforcement entities, and the platform will remain on hold until a robust safety solution can be established.</p>
<p>Before THORChain went into maintenance, the FTX exploiter had reportedly <a href="https://www.thestreet.com/crypto/markets/ftx-hacker-moves-38-million-in-crypto-as-sam-bankman-fried-trial-begins" target="_blank" rel="noopener noreferrer nofollow">moved</a> at least $38 million worth of ETH through it and the privacy-protecting platform, Railgun.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">FTX Accounts Drainer transferred 7,500 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($12.62M) out again 1 hour ago.<br><br>The FTX Accounts Drainer has transferred 22,500 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($38M) out in the past 2 days and currently has 163,235 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($275M) left.<a href="https://t.co/YMSdqrSTxZ" target="_blank" rel="noopener noreferrer nofollow">https://t.co/YMSdqrSTxZ</a> <a href="https://t.co/dL6K47zC3n" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/dL6K47zC3n</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1708518565463380171?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 1, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Originally, damage <a href="https://www.bbc.com/news/business-64313624" target="_blank" rel="noopener noreferrer nofollow">estimates</a> from the hack were thought to be up to $400 million, but FTX reassessed the situation and reported losses closer to $323 million.</p>
<p>The identity of the culprit behind the attack is still shrouded in uncertainty, but speculation within the crypto community <a href="https://www.news.com.au/finance/work/leaders/sam-bankmanfried-denies-he-has-fled-to-argentina-as-600-million-hacked-from-ftx-wallets/news-story/c93f308d1a5bd84f42b4b6a83bd5dd1d" target="_blank" rel="noopener noreferrer nofollow">poi</a><a href="https://www.news.com.au/finance/work/leaders/sam-bankmanfried-denies-he-has-fled-to-argentina-as-600-million-hacked-from-ftx-wallets/news-story/c93f308d1a5bd84f42b4b6a83bd5dd1d" target="_blank" rel="noopener noreferrer nofollow">nted</a> fingers at the controversial FTX founder Sam Bankman-Fried, who is currently on trial for wire fraud and conspiracy to commit money laundering.</p>
<p>While Bankman-Fried has adamantly <a href="https://twitter.com/SBF_FTX/status/1608908562851598336" target="_blank" rel="noopener noreferrer nofollow">refuted</a> claims of his involvement in the theft, the significant movement of stolen funds coinciding with his trial has reignited <a href="https://crypto.news/ftx-account-drainer-might-have-an-insider/" target="_blank" rel="noopener noreferrer nofollow">speculation</a> of an insider’s involvement.</p>
<p>Read more: <a href="https://crypto.news/what-to-expect-when-ftx-founder-trial-resumes-day-5/" rel="noopener noreferrer nofollow"> What to expect when FTX founder Sam Bankman-Fried’s trial resumes for day 5 </a></p>

FTX hacker switches strategy after THORSwap suspends service

crypto.news

Other articles published on Oct 7, 2023

Binance’s POR Reports: Transparency Amidst Legal Uncertainty

Will Bitcoin Break New Ground or Crumble Under Pressure?

One in Ten Chatbot Users Are Big Time Horndogs, Researchers Find

How Ripple Case Developments Could Impact Ethereum’s Fate

Pump Or Dump? Ripple (XRP) and Cardano (ADA) Nearest Resistance Levels Could Make New Trend

$PKR Now Trading on MEXC and Bitmart with Bittrex Going Live Shortly – Do Not Miss This Opportuni...

Join our free newsletter for daily crypto updates!