Ether Heist Update: Millions Tied to FTX 'Hacker' As They Evade Capture

In Nov 2022, FTX experienced a hack shortly after the bankruptcy declaration of the global crypto empire. Following this incident, Sam Bankman-Fried, the founder of FTX, stepped down from his position as the company’s head. According to blockchain data, approximately 2,500 Ether (ETH), with a value slightly above $4 million and associated with the previous year’s FTX exchange exploit, began transferring on a Saturday.

Ether, held in a wallet linked to the FTX accounts drainer, has started moving after almost a year of dormancy. The funds were divided into two portions, and then underwent several subsequent transactions. Approximately 700 ETH was transferred using the Thorchain Router, while around 1,200 ETH went through the Railgun privacy tool. In addition, there is currently another 550 ETH residing in an intermediate wallet.

The Railgun, a privacy wallet, enables users to securely store tokens and access decentralized financial services, such as lending and borrowing. It ensures transaction privacy by obscuring the specific utilization of funds. On the other hand, Thorchain acts as a bridge, facilitating seamless token swaps across different blockchain networks.

The original wallet still holds 12,500 ETH, which currently has a value of $21 million. In contrast, the accounts connected to FTX and FTX US saw significant depletion on Nov 11, 2022. It incident transpired shortly after the company declared bankruptcy and the subsequent resignation of its founder, Sam Bankman-Fried, from his previous position as leader of the crypto empire.

The FTX Heist: Unraveling The $600 Million Ether Mystery & Legal Battles

However, during that time, the assailant seized over $600 million worth of ether. Following this incident, Ryne Miller, the general counsel for FTX, expressed in a now-deleted tweet the implementation of “precautionary measures” to protect funds stored in other FTX wallets.

The CEO and Chief Restructuring Officer of the FTX Debtors, John J. Ray III, is overseeing FTX’s bankruptcy. He has disclosed that reports indicate a theft of $323 million in various tokens from the international exchange. Additionally, there has been a reported hack where $90 million was stolen from the US platform.

The responsible party behind the theft of funds remains unknown, leaving their identity undisclosed. After breaching the system, approximately 21,500 ETH (equivalent to $27 million at that time) was promptly converted into the stablecoin DAI. However, a substantial amount of 288,000 ETH remained in specific addresses connected to the culprit.

However, Days before his trial in the U.S. for fraud and conspiracy charges, Bankman-Fried’s transactions on Saturday take center stage. While he has pleaded not guilty to all allegations, several former FTX and Alameda Research executives have admitted their guilt and are expected to testify against him.

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