Russian Ties Suspected in FTX Cryptocurrency Hack

Elliptic, a blockchain analytics company, has unveiled evidence indicating that a Russian-affiliated organization could be responsible for the major breach at cryptocurrency exchange FTX, where a whopping $477 million in multiple cryptocurrencies were stolen.

FTX’s Founder Unlikely the Culprit A significant detail in Elliptic’s report has shed light on early doubts regarding FTX founder Sam Bankman-Fried’s involvement in the heist.

Elliptic states that on Oct. 4, 2023, at 3:41 p.m. EST, a transfer of $15 million from the pilfered assets occurred. During this exact moment, Bankman-Fried was allegedly present in a Manhattan court without any internet connection, challenging the likelihood of his involvement in the said transfer.

Post the security breach, a large chunk of the misappropriated funds was exchanged to Bitcoin (BTC) and moved via ChipMixer, a now-inoperative privacy tool. Elliptic’s investigation indicates that these funds frequently mingled with assets linked to Russian-associated criminal entities, encompassing ransomware factions and clandestine online markets.

“This points to the involvement of a broker or other intermediary with a nexus in Russia,” the analytics firm commented.

It’s noteworthy to mention that FTX lost 9,500 Ethereum (ETH) to an anonymous cybercriminal on the same day it declared bankruptcy in the previous November. This perpetrator further acquired other digital currencies, which included Pax Gold (PAXG), Tether (USDT), and Wrapped Bitcoin (WBTC). Even though a segment of these stolen assets was seized by regulatory bodies, the majority were successfully traded into alternate cryptocurrencies and relocated to other blockchains.