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Report: Hackers Moving Millions in Bitcoin Stolen From Binance

July 17, 2019

The hackers behind the recent massive attack on Binance are moving parts of their stolen Bitcoin haul off exchanges and potentially swapping the stash into other cryptocurrencies, according to analysis from Confirm, an analytics provider.

Hackers stole 7,000 BTC worth $40 million from one of Binance’s hot wallets in early May. Since then, the perpetrators have been moving the Bitcoin from wallet to wallet. Now they appear to be liquidating some of the stolen assets through various exchanges, reports Coindesk.

Says Grant Blaisdell, co-founder of Confirm,

“Analysis of one of the mainchains used by the hacker in layering stolen funds shows that they were able to liquidate at least 1.8087 BTC (21,000.00 USD) on the following exchanges.”

The exchanges and amounts include:

  • Bitfinex: 0.7934 BTC

  • Binance: 0.4294 BTC

  • Bitmex: 0.0022 BTC

  • KuCoin: 0.0713 BTC

  • Kuna: 0.2482 BTC

  • Bitmarket: 0.2560 BTC

  • Crypterra: 0.0072 BTC

  • Bitcoin.de: 0.0007 BTC

  • WazirX: 0.0003 BTC

Researchers from Chainalysis conclude that hacking exchanges is the most lucrative crypto crime and that it will continue.

“We took a look at hacks that target cryptocurrency organizations such as exchanges. These hacks involve large thefts, often stealing tens or even hundreds of millions of dollars directly from exchanges. Hacking dwarfs all other forms of crypto crime, and it is dominated by two prominent, professional hacking groups. Together, these two groups are responsible for stealing around $1 billion to date, at least 60% of all publicly reported hacks. And given the potential rewards, there’s no question hacking will continue; it is the most lucrative of all crypto crimes.

…

The hackers typically move stolen funds through a complex array of wallets and exchanges in an attempt to disguise the funds’ criminal origins. The hackers then often observe a quiet period of 40 or more days in which they don’t move funds, waiting until interest in the theft has died down. Once they feel safe, they move quickly. At least 50% of the hacked funds are cashed out through some conversion service within 112 days.”

The researchers also report that exchanges working together can help curb crime in the ecosystem.

In May, Binance reported that it had engaged with several firms to help track the stolen Bitcoin.

“Many security and blockchain analytics firms are actively helping us track the stolen funds. We are also working closely with many exchanges and other services to ensure stolen funds are frozen if received. It is already sort of an alliance, and we have some ideas to contribute more on this front after we get past this incident.”

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