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Crypto funds stolen from FTX shortly after its bankruptcy filing continue to be transferred. Security firm Chainalysis posted a series of tweets in which it called attention to the transactions.

Additionally, the company dispelled the rumor that the hacker was the Securities Commission of The Bahamas (SCB).

“The information that the funds stolen from FTX were in fact sent to the Bahamas Securities Commission is incorrect. Some funds were stolen and some were sent to regulators,” the blockchain sleuth said.

On November 18, SCB confirmed that it had ordered the transfer of funds from FTX clients to a cold wallet for safekeeping. However, the regulator only received the portion of customer funds that could not be stolen by the hacker.

Chainalysis also said along these lines that cryptocurrencies stolen by FTX are on the move and exchanges should be on high alert to freeze them in case the hacker attempts to cash them out.

Meanwhile, Chainalysis, which drew criticism for failing to detect FTX fraud in advance, pointed out that it is actively working with the entire crypto industry to recover stolen crypto funds.

We are in contact with our partners across the ecosystem as we strive to secure as many assets as possible to return to depositors.

Chainalysis also drew attention to the fact that the hacker is moving funds from ETH to BTC, likely to mix them up before attempting a withdrawal.

FTX Drainer Convert ETH to RenBTC

PeckShield also brought attention to this issue. The blockchain security company reported countless FTX drainer transactions over the past 24 hours. This drainer had become one of the biggest Ethereum whales over the past week.

For a short time, drainer FTX had become the 27th-largest Ethereum holder, raising concerns about the potential implications for the Ethereum ecosystem.

However, in the past 24 hours, the hacker has switched to trading ETH for renBTC. PeckShield reported, “FTX Accounts Drainer 1 currently holds $200,735.1 ETH (~$235.5 million) and drops to the 37th largest holder of $ETH (down from 27th).”

However, at press time, the hacker has already moved up another spot and is currently holding ETH worth around $235.5 million, again rising to the 36th largest ETH holder as of the 37th place.

In a recent post, Peckshield stated that renBTC bridge funds are now located at an address beginning with “bc1qaq,” who currently holds 2444.55 BTC worth around $40 million.

Just before press time, account drainer FTX 0x8059 topped up around 684.6 renBTC (approximately $11.15 million) via Ren:BTC Gateway.

According analyst ZachXBT, the hacker uses these numerous steps to ensure that stolen cryptocurrencies cannot be frozen. Ultimately, the “funds will likely be sent to a mixer at some point in the future.”

At press time, the price of BTC was trending lower amid fears and rumors of a possible Insolvency of Genesis and DCG.

BitcoinBTC USD 2022-11-21
Bitcoin price, hourly chart. Source: TradingView

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