Following intriguing series of transactions linked to last year’s high-profile FTX hack, the culprit or group of culprits seem to have relocated millions in stolen cryptocurrency. Recent on-chain analytics from Lookonchain report the movement of 22,500 Ether (ETH), which translates to approximately $37 million.
This intrigue deepens as 7,500 ETH, or around $12.4 million, was moved as recently as on Monday. Interestingly, these financial manoeuvres coincide with the forthcoming trial of Sam Bankman-Fried, FTX’s former CEO and co-founder, who’s accused of fraudulent activities and money laundering. Still looming under potential imprisonment of over a century if convicted on all charges, Bankman-Fried seems to be at a pivotal juncture.
Let’s travel back for a moment to when FTX became the target of one of 2022’s most significant crypto thefts, incurring an estimated loss topping $350 million. This occurred almost immediately after Bankman-Fried had filed for Chapter 11 bankruptcy protection and resigned from the company. According to a previous report from Chainalysis, the stolen Ether was eventually converted into Bitcoin, using RenBridge, a protocol supporting decentralized cross-chain transfers.
Bankman-Fried had hinted at the likelihood of an inside job in a prior interview, suggesting that a “former employee” or another ill-intentioned party might have somehow obtained the private keys to FTX’s crypto wallets. As a result, an investigation was initiated by the US Justice Department, aiming to lift the veil on the individual or group behind this hack.
The tale takes another twist when John J. Ray III, Bankman-Fried’s successor, disclosed that FTX had kept its wallet’s private keys unencrypted and devoid of sufficient security measures.
Is the timing of these current movements connected with the impending trial of Bankman-Fried, or is it merly happenstance? The answers remain locked within the encrypted world of blockchain. Nevertheless, one thing is unmistakably clear; proper security measures for digital wallets are not an option, but an absolute prerequisite in the world of cryptocurrency. This particular heist has accentuated the vulnerabilities and potential risks inherent to the crypto market if security isn’t taken seriously. As users, it’s our responsibility to ensure the safety of our digital assets, while trusting that exchanges will do their part as well.
Source: Cryptonews
