Source: PixabayFunds allegedly stolen from the now-bankrupt FTX cryptocurrency exchange are on the move and likely making their way to the exchanges as hackers try to collect the proceeds.
According to an update from blockchain intelligence firm Chainalysis, funds have already been converted from ethereum (ETH) to bitcoin (BTC) via RenBridge (REN), a protocol that enables decentralized cross-chain transfers between several different blockchains. .
The likely next step, according to Chainalysis, is to send the funds to a coin mixing service to disguise their origin, before hackers attempt to cash out.
“We are in contact with our partners across the ecosystem as we work to help secure as many assets as possible for return to depositors,” Chainalysis wrote.
It should be noted, however, that any further transfers between ETH and BTC using RenBridge are expected to become more difficult in the future, as RenBridge has already announced a freeze on new renBTC mints. And while this was announced for reasons unrelated to the FTX hack, it would still mean that any remaining ETH the hackers may have might have to be sold directly to fiat.
The situation around RenBridge was also highlighted by popular Twitter user kamikaz_ETH, who said that hackers are "actively downloading ETH on-chain."
“Sell ETH to wBTC to renBTC through aggregators like 1inch,” the user added.
Shortly after the tweet, the same user tweeted again, stating that the freeze announced by RenBridge now urges hackers to “drain ETH ASAP”.
As of Monday morning in Europe, the sale of ETH to BTC was still ongoing, with 185,000 ETH now remaining in the hackers' main wallet, according to kamikaz_ETH.
Unclear circumstances surrounding hacking
It's still unclear who exactly drained FTX for the funds, with some saying it must have been an inside job, and others hinting that the Bahamian government may also be involved in some way. 'otra.
Notably, FTX itself also issued a funds warning and called on exchanges to return all funds from the hack. “Exchanges must take all steps to ensure these funds are returned to the bankruptcy estate,” said a tweet from FTX's official Twitter account.