- Home
- Cryptocurrency
- FTX Hacker Adapts Strategy, Switches to Threshold Network for Laundering Stolen Ethereum
FTX Hacker Adapts Strategy, Switches to Threshold Network for Laundering Stolen Ethereum
![](/media/articles/1696876350.png)
Recent observations by on-chain analyst Lookonchain have illuminated this audacious change in tactics. The hacker, responsible for the FTX breach, had previously relied on THORChain to obfuscate their trail. However, Lookonchain's data reveals a calculated shift towards the Threshold Network, marking the beginning of a thrilling new chapter in the world of crypto heists.
Under the radar of blockchain scrutiny, the attacker successfully converted over 3,000 Ether (ETH), equivalent to a staggering $4.9 million, into tBTC via the Threshold Network. The plot thickens as the hacker, undeterred, proceeds to convert an astonishing 75,636 ETH, valued at an eye-watering $124 million, into Bitcoin. A jaw-dropping $180 million worth of ETH remains locked in their enigmatic wallet, serving as a constant reminder of their elusive prowess.
After @THORSwap suspended swaps, FTX Exploiter started swapping $ETH for $tBTC and cross-chained to the Bitcoin network through @TheTNetwork.
— Lookonchain (@lookonchain) October 6, 2023
So far, FTX Exploiter has swapped 75,636 $ETH($124M) for BTC assets and cross-chained to the Bitcoin network. pic.twitter.com/ksIPBzRJ0d
Threshold Network, the chosen conduit for this audacious scheme, offers a decentralized bridge between the Bitcoin (BTC) and Ethereum blockchains. Users can seamlessly transform their assets into tBTC, maintaining a 1:1 peg with Bitcoin, while keeping their transactions shrouded in secrecy.
The hacker's preference for THORSwap had previously been their modus operandi. However, this path was abruptly halted as THORSwap entered maintenance mode on October 6, a bold move to thwart further illegal activities. This decision stemmed from extensive internal deliberations, with input from legal authorities and law enforcement agencies. The platform now stands frozen until a robust security solution can be devised, leaving the crypto world on edge.
Fellow THORChads,
— THORSwap ⚡ #BetterThanCEX (@THORSwap) October 6, 2023
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…
Prior to THORChain's maintenance, the FTX exploit had seen the movement of a staggering $38 million worth of ETH through it, in conjunction with the privacy-protecting platform, Railgun. Although initial estimates of the hack's damage hovered around $400 million, FTX later revised this figure to approximately $323 million.
FTX Accounts Drainer transferred 7,500 $ETH($12.62M) out again 1 hour ago.
— Lookonchain (@lookonchain) October 1, 2023
The FTX Accounts Drainer has transferred 22,500 $ETH($38M) out in the past 2 days and currently has 163,235 $ETH($275M) left.https://t.co/YMSdqrSTxZ pic.twitter.com/dL6K47zC3n
The identity of the enigmatic culprit remains shrouded in uncertainty, casting an eerie aura over the crypto landscape. Speculation within the community has, at times, pointed fingers at the controversial FTX founder, Sam Bankman-Fried, currently embroiled in a trial for wire fraud and conspiracy to commit money laundering. Despite vehemently denying involvement in the theft, the suspiciously timed movement of stolen funds during his trial has reignited conjectures of insider complicity.
The saga of the FTX hacker's evolving strategy continues to captivate the crypto world, resembling a cryptic thriller with unpredictable twists and turns. As experts scramble to decipher the identity behind the mask, one thing remains certain: the hacker's audacious maneuvers underscore the ever-evolving nature of cryptocurrency heists, leaving us all on the edge of our seats in this riveting crypto drama
Read more: Elon Musk Faces Backlash Over Suspension of Pro-XRP Twitter Account Amid SEC Scrutiny
Trending
![](/media/articles/thumb/1713207994.jpg)
![](/media/articles/thumb/1713207052.jpg)
Press Releases
Deep Dives
![](/media/articles/thumb/1713202119.jpg)
![](/media/articles/thumb/1702819494.jpg)
![](/media/articles/thumb/1702815162.jpg)