Recently, some of the 120,000 Bitcoin (BTC) that were stolen from Bitfinex in 2016 started moving again. This is what has been happening with this cache of currencies valued at over $1 billion.
USD 1 billion in BTC waiting to be sold
So far, hackers have moved less than 3,000 BTCs out of the nearly 120,000 BTCs they managed to steal from the Crypto Trader exchange. The largest proportion of currencies spent went to the darknet markets, with Russain’s giant Hydra leading with 736 BTC. This is worrying, as it would imply that a large amount of Bitcoin could be thrown into the market at any time. On the other hand, this could be an indication that it is becoming increasingly difficult for criminals to launder stolen cryptomoney.
CipherTrace: Nearly $1.4 billion in crypts were stolen in the first five months of 2020
Bitcoin finds its way home
On June 2, 82 of the stolen Bitcoins were transferred to private wallets where they still reside. Two other transactions occurred on the same day.
June 2 Transactions Involving Stolen BTC
We tracked the geographic origin of these transactions. These transactions came from the US, UK and Singapore. This would probably indicate that the thieves were using a VPN to hide their true location.
The founder of Panther Capital talks about what he learned from missing out on investing in Ethereum
Another interesting observation is that apparently some of the stolen Bitcoin arrived at Huobi, Binance and Bitfinex in 2019.
We cannot reach this conclusion with absolute certainty, but what we do know is that there were no entities identified as exchanges, mixers or payment processors between the point of origin and those exchanges. If our conclusions are correct, those exchanges must have the names of the hackers or their accomplices.
FinCEN’s director, Blanco, is concerned about the bad actors taking over the space of the crypto currencies
As more crypto businesses begin to take their customers and anti-money laundering regulations more seriously, crypto hacking should become a less profitable endeavor.