The crypto market is once again red because of the Ethereum dump operation initiated by the FTX hacker. He has been following different ways to launder the millions of dollars stolen from the FTX exchange. So far all the methods applied by him are already known ones.
The hacker is one of the top Ethereum owners and it is enough narrative to shake the whole crypto market. Recently, some of the Ethereum funds were tried to be laundered though it did not have a positive result. The stolen funds are still trackable but the sell-off made him the #37 Top holder of Ethereum.
Ethereum to RenBTC - Cross Chain Attempts
As the Tornado Cash platform is restricted, the other wormhole projects started to attract a lot of attention. Though decentralized exchanges are not meant to be the places where illegal money can be legalized in an unlawful way.
On Nov. 20, the FTX wallet drainer 1 transferred 50,000 ETH to a new address, 0x866E. The new wallet address then swapped the ETH for renBTC (ERC-20 version of BTC) and bridged to two wallets on the Bitcoin blockchain. One of the wallets bc1qvd…gpedg held 1,070 renBTC while another wallet bc1qa…n0702 held 2,444 renBTC. - Cointelegraph
As it is nearly too hard and complicated to hide operations on blockchain the stolen funds can be found quite easily. At that point, hackers follow a different method.
Peel Chains
Peel Chain is a series of chains that are bound to each other with the aim of laundering money via complex transactions. It may look like a long and complex thing to achieve it but Peel Chains are different techniques of realizing the assets.
Basically, hackers utilize the structures of blockchains by dividing the main fund into tiny parts so that it gets harder to track every single wallet. To be honest, it is the only way to make people forget about the event faster to render the funds somewhere that is available.
Even though the Peel Chain method makes it really difficult to track each wallet, the model still has several disadvantages. The only way to enjoy privacy and security at the same time is focusing on projects that use mimble-wimle technology or the ones that are in-born privacy based ones. Personally, I appreciate the strength of the project!
Considering the scope of FTX hack, it is an important even that can hurt the ecosystem profoundly but the reaction of the market may be above the levels of the earlier transactions. We are still worried about the future of centralized service providers and the corrupted funding mechanisms among these financial actors. Crypto might be overshadowed due to global factors + inner concerns in this winter, the collapse of FTX opened a brand new era for crypto ecosystem.
What do you think about the actions taken by the FTX hacker?
Do hackers need Tornado Cash for money laundering?
Time to brain storm on these events ✌🏼
Hive On 🔥
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