Cryptocurrency

New Data Shows FTX Hacker Is Accumulating Ethereum Tokens, But Why?

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FTX is one of the renowned cryptocurrency exchanges worldwide that recently collapsed, and the crypto exchange has experienced a hack where the perpetrator is gathering Ethereum tokens. The company promotes the transaction and liquidity of digital tokens and coins. With FTX, users could easily connect with their wallets, access different derivative contracts, place trades, and do more.

Everything was working well until the exchange crashed. Many of its institutional and individual investors have suddenly seen themselves at a loss never imagined. FTX has now filed for bankruptcy, but things are getting worse.

The company reported a hacking case in its system last week Friday. The incident followed the company’s filing for bankruptcy protection. According to the report from the crypto exchange, about $400 million was looted from its wallet.

FTX Hacker Amasses Ethereum

The exchange also experienced another recent theft of about $600 million in digital tokens. The culprit is currently gathering Ethereum tokens in preparation for a sell-off.

Meanwhile, the company’s main Accounts Drainer has approved the trading of a digital token called $DAI on GPv2VaultRelayer. On chain data shows that approximately 21,155 Ethereum were transferred to FTX Accounts Drainer from some other Accounts Drainers.

On the other hand, the hacker is already mounting a balance of two digital tokens, Ethereum and DAI. The information from Arkham Intelligence cited that it’s impossible to freeze or blacklist these tokens on the Ethereum mainnet. Arkham Intelligence is a known crypto-intelligence organization in the crypto space.

New Data Shows FTX Hacker Is Accumulating Ethereum Tokens, But Why?
Ethereum, price trends upwards on the chart l ETHUSDT on Tradingview.com

The crypto-intelligence platform has been understudying the operations of the culprit. Its assessment revealed that the hacker is somewhat frightened. There seems to be spillage, which has resulted in a massive loss for them.

So, to avoid more spillage, they decided to perform a batch sell-off of some digital tokens. They include MATIC, LINK, and PAXG. According to Arkham, the transactions occurred on multiple decentralized exchanges, including DODO, linch, CowSwap, and UniSwap.

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After the looting last Friday, the company revealed the total amount in the hacker’s custody. According to the report, there is about $339 million worth of cryptocurrencies in the wallets belonging to the hacker.

The details of the digital tokens and the amount associated with them are as follows:

  • The Polygon Matic bridge (MATIC) has up to $3.8 million.
  • Tether’s stablecoin (USDT) operates on the Avalanche blockchain and has $4 million.
  • $44 million in BNB – The Binance native cryptocurrency.
  • DAI – the Maker’s stable token had $48 million.
  • And the Ethereum blockchain digital token, Ethereum, had up to $215 million.

The United States authorities seek to restrict attackers from withdrawing from the accounts. As a result, it has instructed Paxos to blacklist all accounts in question. This action will prevent attackers from cashing out the $20 million worth of Paxos’ stablecoin – PAXG tokens.

Featured image from Pixabay, chart from TradingView.com

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