Ether linked to last year's FTX hack begins moving
What's the story
Millions worth of ether linked to an FTX account drainer have been spotted in transactions in blockchain data. This comes just before FTX founder and Alameda Research head Sam Bankman-Fried is set to face trial in the US on charges of fraud and conspiracy to commit fraud. Federal prosecutors brought these charges against him in December 2022. Bankman-Fried has consistently denied any wrongdoing, pleading not guilty to charges. Meanwhile, several former executives, admitting guilt, are expected to testify against him.
Details
Over 1,900 ETH moved through Thorchain Router, Railgun privacy tool
Around 2,500 ether (ETH), worth over $4 million, has reportedly been transferred from a wallet associated with the aforementioned FTX hacker. The funds were initially split into two and then moved through several different wallets using various privacy tools. Over 700 ETH and 1,200 ETH were moved through the Thorchain Router and Railgun privacy tool, respectively, while 550 ETH remain in an intermediate wallet. There is still 12,500 ETH (worth around $21 million) in the original wallet.
More
Accounts tied to FTX, FTX US drained in November
On November 11, 2022, shortly after FTX filed for bankruptcy and its founder Bankman-Fried resigned, attackers stole ETH worth over $600 million from FTX and FTX US accounts. The identities of the attackers have never been discovered. But a few days after the hack, 21,500 ETH, worth $27 million back then, was converted into the stablecoin DAI. Moreover, 288,000 ETH remains in wallets affiliated with the hackers, per CoinDesk.
Scenario
Testimonies of former executives could be vital for prosecution
Meanwhile, Bankman-Fried's trial is fast approaching. The case centers around FTX and Alameda Research's alleged role in draining millions of ether from customer accounts. Despite the charges, Bankman-Fried maintains he's innocent, pleading not guilty on all counts. However, some former executives have pleaded guilty and might testify against him during the trial. Their testimonies could prove vital for the prosecution, potentially revealing key details about FTX and Alameda Research's operations when millions of ether were allegedly siphoned from accounts.
Insights
Potential impact on FTX and Alameda Research
The outcome of Bankman-Fried's trial could have far-reaching consequences for the now-defunct FTX and Alameda Research. A guilty verdict could possibly trigger further investigations into their activities and former employees. Moreover, it might also affect the wider cryptocurrency industry as regulators continue to scrutinize digital asset platforms for compliance with financial regulations. As a result, industry stakeholders and investors will be keeping a close eye on the trial's developments.