Crypto hackers flee, but technology won’t let them hide – BeInCrypto

The wallet funds involved in the 2016 Bitfinex hack and the 2020 KuCoin hack have been on the move lately.

With Whale Bot working for law enforcement and tweeting about transactions and the exchange, anonymous hackers seem to have nowhere to hide.

Hackers are hodlers

On August 4, Bitfinex, the victim of a 2016 hack in which lost more than $ 1.3 billion in Bitcoin (BTC) at the current price, offered a reward of 400 million dollars for information leading to the return of your funds. The proposal did not require that hackers be brought to justice. It even appeared to absolve the hackers if they returned the funds themselves in exchange for the reward.

The hackers weren’t interested. On August 16, hackers moved 467.67 BTC ($ 5.7 million) yet new purse, ignoring the option of not going to jail.

But as Binance CEO CZ tweeted on October 15, those hackers are hodlers.

This was in response to a tweet on October 15 from Whale Alert that said Bitfinex hackers moved 142.2 BTC ($ 1.6 million) to an unknown purse. Four years after the attack, the criminals have still not been identified or collected their winnings, at least in an obvious way.

Crypto enthusiast Crypto Bull responded that hackers they were probably moving the funds to sell. But dividing the stolen bitcoin into smaller sums only serves to mask its origin.

Source: Twitter

In the meantime, KuCoin is still recovering from a hack it suffered on September 26 in which they robbed him $ 150 million in cryptocurrencies.

Stuffing digital money under the mattress

The reason for the rise in digital money under the mattress is not entirely clear. Hackers could be looking for a way to sell the stolen cryptocurrencies.

Part of the problem for bitcoin hackers these days is the amount of attention they get. Since Whale Bots are constantly tweeting about big moves and have wallets known for embezzlement flagged, it’s more difficult to move funds without anyone noticing.

BeInCrypto previously reported on the difficulty of wash stolen bitcoin. North Korean hackers, although adept at stealing cryptocurrencies, have had some difficulties to convert them to fiat. There are some technical tricks, but one tactic in laundering cryptocurrencies seems to be break purchases into small pieces in thousands of addresses and then move those funds thousands of times. With the immutability of blockchain, the funds are still traceable, only it takes much longer and is a bigger headache for authorities.

With the Bitfinex hack of 2016 and the hack de KuCoin By 2020, the culprits seem to face similar problems. Any address that has touched the stolen goods is corrupted as the authorities have flagged them and the centralized exchange can blacklist them.

El CEO de KuCoin, Johnny Lyu, claimed to have identified the culprits of his attack. KuCoin claims to be working with authorities to bring the thieves to justice and return the funds, but that didn’t stop the thieves from moving huge sums of money, according to Whale Alert.

Step by Step

Hackers continue to shuffle money, and their route out of the blockchain is anyone’s guess. Atomic Swaps with a privacy coin like XMR it could also be an escape route.

Recently, Monero Labs funded an upgrade that would bring Monero into the world of Atomic Swaps. This would allow anonymous cross-chain exchanges and traceable BTC could be transformed into a less traceable currency. But there is still the difficulty of how to sell XMR for money without arousing suspicion.

Meanwhile, the KuCoin hackers dumped million dollars in ERC-20 tokens on decentralized exchange. This exchange, like Uniswap, is theoretically immune to consensus action and ensures the identification of hackers as much as possible.

With Europe cracking down on dark web privacy coin purchases, and Uniswap drawing attention due to bad actors, no one knows how long these privacy techniques will remain viable. Even so, the crypto industry is still booming, and new solutions could emerge any day.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.