The Crypto Heist Chronicle: A Trail of Intrigue

Martin Walker
Oct 1, 2023 at 02:09 pm

As FTX grappled with its dramatic collapse, an elusive hacker made a daring move, making off with hundreds of millions of dollars, leaving the crypto community astonished. A staggering 10 months later, intriguing on-chain data surfaced, shedding light on newfound activity within the wallet attributed to the suspected culprit.

The identity of the individual responsible and the precise techniques employed in this audacious multimillion-dollar hack remained shrouded in a veil of enigma, creating an air of suspense and intrigue that gripped the community until the moment of the sudden transfers.

Drawing from insights provided by Arkham Intelligence, it was revealed that the FTX Hacker, holding assets in excess of $300 million, exhibited signs of movement after a decade of dormancy. The wallet's holdings still included a substantial 12.5K ETH, adding to the mystique.

Intriguingly, on September 30th, a substantial sum of $8 million was observed to have been skillfully maneuvered through the sophisticated privacy wallet RailGun and the decentralized exchange Thorchain, further deepening the intrigue surrounding this high-stakes cyber saga.

According to the detailed analysis by Arkham's data team, two distinct transactions came to light in which the hacker orchestrated the transfer of 2,500 ETH per batch, each batch boasting a considerable value of $4 million, underscoring the audacity and sophistication of the operations.

The FTX breach, a somber event etched in the annals of the crypto world, took place on November 11, 2022, a date that saw FTX teetering on the brink of bankruptcy, its founder, Sam Bankman-Fried, reluctantly relinquishing his position, adding a dramatic twist to this unfolding tale.

During the unsettling incident, an unknown assailant or assailants managed to deftly siphon more than $600 million worth of Ether, momentarily skyrocketing their position to the 35th largest holder of this popular altcoin, a feat that sent shockwaves through the digital asset community.

In the initial phases of this cyber escapade, the hacker opted to make a deposit of the pilfered funds into CoinMixer, an anonymous Bitcoin mixing service famed for its ability to obfuscate on-chain Bitcoin transfers, making it a favored choice for those seeking to cover their digital tracks.

In a bid to further muddy the waters and confound any attempts at tracing the funds, the enigmatic entity engaged in a flurry of strategic swaps and bridge transfers, painting an intricate picture of evasion and subterfuge, leaving investigators puzzled and the community riveted.

Subsequent to this high-profile incident, the renowned on-chain sleuth ZackXBT added his voice to the chorus of speculation, suggesting that the astute hacker had most likely funneled these ill-gotten gains to the crypto exchange OKX, deftly navigating the labyrinthine world of crypto after an inconspicuous exit from the mixer.

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