In a startling development, 2,500 ether (ETH), linked to the much-publicized FTX hack of November 2022, has been observed to be on the move after almost a year of dormancy. The unfolding narrative brings forth fresh twists in the saga that unfolded hours after FTX proclaimed bankruptcy and its spearhead, Sam Bankman-Fried, vacated his position.
A Sudden Stir in Slumbering Funds
Blockchain analytics illustrate that the ETH, with a valuation slightly above $4 million, is associated with the wallet linked to the individual or group that drained FTX accounts. These funds have been strategically segmented and transferred through various transactions and platforms, such as Thorchain Router and Railgun privacy tool, each enabling a degree of anonymity or inter-blockchain operability. A balance of 12,500 ETH, approximating $21 million, still remains in the origin wallet.
Utilizing Privacy and Bridge Tools
The hackers employed sophisticated methods to obfuscate the funds’ movements. Approximately 700 ETH was maneuvered using Thorchain, a bridge allowing token swaps between diverse blockchains while maintaining wallet confidentiality. Concurrently, about 1,200 ETH navigated through Railgun, a privacy wallet enabling token storage and utilization in decentralized finance (DeFi) services with shielded transactions, veiling exact fund usage. An additional 550 ETH is identified in another intermediary wallet.
FTX’s Dark Hour: A Retrospective Glance
FTX, along with FTX US, confronted the calamity of its accounts being depleted on November 11, 2022. This digital heist transpired merely hours subsequent to the company initiating bankruptcy proceedings and witnessing the departure of its founder, Sam Bankman-Fried. The adversaries absconded with ether valued at over $600 million at that juncture. A communication via a now-erased tweet from Ryne Miller, FTX’s general counsel at that time, conveyed that efforts were in place to safeguard assets in other FTX wallets.
In the aftermath, the malefactor(s) remained concealed. Within days post the digital burglary, roughly 21,500 ETH, valued at $27 million then, were transmuted into the stablecoin DAI. Moreover, an additional 288,000 ETH persisted in addresses linked to the malefactor.
Concluding Remarks
The reactivation of the ether tied to the FTX debacle of 2022 has reignited interest and speculation in a case that spotlighted the vulnerabilities and challenges faced by even the titans in the cryptosphere.
The price of Ethereum (ETH) at the time of writing is $1677.16.
