FTX funds were stolen by a thief who converted bitcoin into ETH. Chainalysis notes Information that the funds were sent to the Securities Commission of The Bahamas is inaccurate.
According to Chainalysis, FTX’s funds were not received by the Securities Commission of The Bahamas
Crypto exchange FTX is now converting funds stolen from Ether into Bitcoin, according to blockchain analysis company Chainalysis.
🚨1/ Funds stolen from FTX are on the move and exchanges should be on high alert to freeze them if the hacker attempts to cash out
— Chainalysis (@chainalysis) November 20, 2022
Chainalysis encouraged exchanges to freeze these coins on Twitter on November 20. This is to keep the assets from being converted into fiat or further muddied by the thief.
Update: FTX Exploiter is now finished buying ETH
The big question is, what will he do next?
He’s inexperienced on-chain, so I assume he tornados and that’s the end
The nightmare scenario is he shorts ETH on a separate clean wallet and dumps the $275 million ETH 😔 https://t.co/UmNqLzRyKp
— kamikaz ΞTH 🦇🔊 (@kamikaz_ETH) November 15, 2022
An unknown actor stole 228,523 ETH from the FTX exchange during the controversy surrounding its collapse and bankruptcy. He ranks as one of the largest holders of ETH in the world due to the value of these coins, which are currently worth USD 268,057,479.
Chainalysis has cast doubt on the initial theory that the funds were all under the custody of securities regulators in the Bahamas.
LIVE: FTX Drainer (Aka Bahamas Gov?) Liquidating ETH
Addy #1 – 0x59
Addy #2 – 0x86Flow So Far
– Move $ETH from #1 to #2
– Swap $ETH for $renBTC
– Send it to NULL AddyUpdate
– Sold 31k $ETH for 2.2k $renBTC
– Sending all $renBTC to NULL Address (ETH Genesis Address)1/n pic.twitter.com/WfkXGsUDRq
— Garlam (@GarlamWON) November 20, 2022
Read Also: The FTX bankruptcy freezes the funds of crypto companies worth millions
Wrapped Bitcoin (WBTC) has been converted into approximately 31,000 ETH as of the time of writing. In total, 2444.55 Bitcoins were sent by the thief using the Ren Protocol to a Bitcoin mainnet wallet.
The past few weeks have been tough for those affected by FTX and its related companies. According to a press release issued earlier today, Perella Weinberg Partners has been in talks with FTX debtors regarding various reorganization efforts. There is, however, a condition attached to the engagement: approval from the bankruptcy court.
Some fear the company’s founder Sam Bankman-Fried may try to flee to Dubai if given the opportunity. He is allegedly under supervision in the Bahamas.
Read Also: Â Tether has frozen a 48 million USDT asset on Tron Owned by FTX
In the end, it is unclear what will happen in this situation. Aside from evidence sharing, judicial cooperation, and criminal investigation and prosecution assistance, the UAE and the USA have an agreement concerning these matters.