In November 2022, FTX, a major cryptocurrency exchange, experienced a devastating hack shortly after declaring bankruptcy. The founder, Sam Bankman-Fried, stepped down from his role at the company.
Recent blockchain data reveals that approximately 2,500 ether (ETH), valued at just over $4 million, related to the FTX exchange exploit in 2022, has begun moving again. This development comes as Bankman-Fried faces upcoming legal proceedings in the United States on fraud charges.
Ether Movements
Ether held in a wallet associated with the FTX accounts that the 2022 hack targeted has shown activity after nearly a year of dormancy. The funds split into two portions and underwent several subsequent transactions.
Notably, 700 ETH transferred using the Thorchain Router, while approximately 1,200 ETH moved through the Railgun privacy tool. An additional 550 ETH remains in an intermediate wallet.
In contrast, Thorchain is a bridge enabling token swaps across various blockchains. It’s important to note that there is still 12,500 ETH, worth approximately $21 million at current prices, in the original wallet.
FTX Hack Recap
On November 11, 2022, the attacker drained funds from FTX and FTX US accounts, mere hours after the company filed for bankruptcy and Sam Bankman-Fried resigned. The attacker managed to seize over $600 million worth of ether during this incident. Reports indicated that attackers stole $323 million in various tokens from FTX’s international exchange and an additional $90 million from its U.S. platform.
The identities of the attacker(s) were never disclosed. Following the theft, they converted approximately 21,500 ETH, valued at $27 million at the time, into the stablecoin DAI, while retaining another 288,000 ETH in addresses linked to the attacker.
Upcoming FTX Trial
The recent transactions involving the hacked funds coincide with the impending trial of Sam Bankman-Fried in the U.S. He faces charges of fraud and conspiracy to commit fraud, which federal prosecutors filed in December. Bankman-Fried has pleaded not guilty to all charges.
Meanwhile, some former FTX and Alameda Research executives have pleaded guilty and are to testify against him during the trial.
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