FTX Hackers Are Using Bitcoin Blenders To Launder Around $477 Million Worth Of Cryptocurrencies

FTX is a famous trading company that claimed bankruptcy at the end of 2022 because of its high debt. The company had drained $663 million when it filed for bankruptcy. However, hackers have stolen $477 million of those funds.

Most hackers use a bitcoin blender for laundering cryptocurrency. Do you want to know more about the FTX hack and the importance of bitcoin blender in money laundering? If so, here is a complete guide to help you.

How Much Money Has Been Stolen By FTX Hackers?

The total amount that FTX hackers stole from the company was $477 million. In November, the CEO of FTX claimed that unauthorized people accessed the assets of the company. A hacker stole money from the company and started converting it to bitcoin.

More than $280 million of the funds were converted into Ethereum (ETH), a popular cryptocurrency. This information has been confirmed through the blockchain record of the hackers. The hackers sent the cryptocurrency to a bitcoin blender before sending it to the safe distribution accounts.

 FTC Hackers Are Converting The Funds To RenBTC

Stolen funds are mainly converted to cryptocurrency and sent to bitcoin blenders for higher safety. However, another popular tactic is to convert the currency into RenBTC to avoid using a centralized bitcoin blender. FTC hackers have also converted some of the funds to this currency.

Hackers convert the stolen funds to RenBTC. This currency is changed to crypto funds using a bridge and sent to decentralized bitcoin blenders. The primary benefit of transferring funds this way is to avoid passing the money through a centralized bitcoin blender.

Remember, a centralized bitcoin blender is not the best idea because it conducts Know Your Customer (KYC) checks. So personal information has to be revealed on such tools. Avoiding a centralized exchange allows hackers to keep their identities safe and prevent themselves from getting caught by the authorities easily.

How Much Money Has Been Moved As RenBTC?

FTX hackers have moved at least $74 million by converting it to RenBTC. The same amount was then changed into bitcoin using RenBridge instead of a centralized bitcoin blender.

You should note that the sister company of FTX has acquired RenBridge in an attempt to recover the funds. Alameda acquired the company in 2021 to build other platforms, such as Solana and Serum.

Serum operates as a decentralized exchange and offers faster processing time to the users. FTX and Alameda backed these projects to control the money better after bankruptcy.

Who Stole Money From FTX?

Funds have been sent to a bitcoin blender by FTX hackers to clean the blockchain history. Bankman-Fried, the ex-CEO of FTX, was alleged of moving the cryptocurrency out of FTX wallets. However, he pinned the blame on an unsatisfied employee.

Bahamian transfers occurred after the money was stolen. However, it cannot be known if the different filings were the same or not. This is because the blockchain history has been altered by sending the funds through a bitcoin blender.

FTX also filed an emergency complaint in the court to prevent Bahamian regulators. It is not known how much money these individuals have after the hack.

Why Are FTX Hackers Using A Bitcoin Blender?

It is necessary to know the function of a bitcoin blender before understanding its role in the hack. A bitcoin blender is a mixer that people send money. The funds will remain in the tumbler for some time before the withdrawal.

Here are the top reasons why FTX hackers are using a bitcoin blender for transferring funds:

1. A Bitcoin Blender Makes It Difficult To Trace The Money

Every cryptocurrency has a blockchain trail that can be used to identify the owner of the funds. A blockchain is mainly a public ledger for cryptocurrency. The main function of a bitcoin blender is to obscure the history of this blockchain.

This means that after sending the money to a bitcoin blender, it will be difficult for people to know who sent the funds. The authorities will only be able to see that Person A added money to a bitcoin blender.

A bitcoin blender also prevents the authorities and other people from knowing who received the money. So this tool makes it difficult to trace the stolen funds in different conditions.

2. A Bitcoin Blender Anonymize The Transaction

Another primary function of a bitcoin blender is that it removes digital signatures from the funds. This means that the platform will anonymize the transaction to a greater level. It will be difficult for people to know that the previous account was linked to the money.

A decentralized bitcoin blender also does not conduct any KYC checks. So you will not have to reveal your name, address, and other personal details. The ease of use of bitcoin blenders is better than other tools.

This is why people prefer bitcoin blenders over other apps that allow them to transfer cryptocurrency. The best part is that a bitcoin blender also lets you send money to various accounts simultaneously. The platform will distribute the funds by sending them in intervals to the recipient.

So a bitcoin blender will make it extremely difficult for the authorities to identify and catch the hackers.

3. A Bitcoin Blender Allows Fast Transfers

FTX hackers are using a bitcoin blender because of the different benefits it offers. It is easy to use a mixer platform for sending money anonymously. The best part is that sending money through a bitcoin blender is faster than other transaction methods.

The cryptocurrency will remain in the blender for a few hours before it can be sent to the recipient. However, it may also take minutes to complete the transaction on some platforms. This mainly depends on the service fee of the tool.

Platforms that charge a higher service fee prioritize the funds more than other tools. So the money will be sent to the recipient’s wallet promptly. The top feature of bitcoin blenders is that they support various cryptocurrency forms.

People can also transfer Ethereum and other tokens using a bitcoin blender. The tool will alter the blockchain history of these currencies to make traceability difficult.

How Is FTX Handling The Loss Of Funds?

FTX has been alert since the hack occurred. The new CEO reported the news of the theft on social media platforms. This company also has an active Twitter account for keeping the public updated.

The company has filed different complaints in court to regain control of the funds by initiating an investigation of the hack. Besides that, the company has also put up a post stating that bitcoin blenders and other exchanges should keep an eye on the funds.

FTX has also urged the companies to alert the authorities if specific funds are transferred from one account to another. The company wants the money to be returned to it if a hacker uses an intermediate wallet using a bitcoin blender.

Can The Stolen Money Be Traced After It Has Been Sent To A Bitcoin Blender?

Many people believe that funds cannot be traced after they have been sent to a bitcoin blender. However, that is not the true case. The primary purpose of a bitcoin blender is to obscure the blockchain history of the stolen money.

This means that the blockchain history will be altered to hide the identity of the owner. However, history will still be present in some form, hidden behind various layers of security. People with advanced tools can access it if they are using the right tools.

Different developers and tech specialists may also recover the money if they can remove the security layers that have been applied to the blockchain history. In short, the FTX money is still traceable and can be recovered if advanced tools are used.

How Much Money Does FTX Owe To Creditors?

It is no secret that FTX had to file for bankruptcy regardless of the crypto theft. The company owes about $3.1 billion to creditors, according to different court filings. This is why it had to file for bankruptcy.

The FTX hack has destroyed the credibility of the company and make it difficult to return credit. It is reported that the stolen funds make up at least 15% of the money that the company owes to different creditors.

Final Thoughts

This is all you need to know about how FTX hackers are using bitcoin blenders to launder $477 million. The anonymity and availability of various blenders make it difficult for the authorities to trace the transactions. So the hackers can enjoy better security and lower chances of getting caught.

Investors cannot access funds because of theft and bankruptcy. The worst part is that even if the money is recovered, FTX will still not be able to clear the debt. This is because the company owes billions of dollars in debt, while the stolen money is only $477 million.

The authorities are on alert, but it is unlikely that the stolen money will be recovered due to bitcoin blender usage.

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