Anti-money laundering and blockchain analytics company Coinfirm has revealed new insight into the activities of the hackers who recently made off with over $40 million worth of Bitcoins from crypto exchange Binance.
According to a series of tweets on Coinfirm’s official Twitter page, the hackers are steadily shuffling around the stolen Bitcoin to new addresses.
Coinfirm says that at 4:11 AM on May 8, a day after the hack was announced, 1,214 BTC of the stolen 7,000 BTC was moved to new addresses. Another 1,337 BTC was then moved to two other new addresses.
Hackers muddying up their trail
Journalist and blockchain analyst Amy Castor explains that the hackers are using classic money laundering tactics to muddy up their tracks.
“Money laundering 101: breaking the transactions up into smaller and smaller amounts making them more and more difficult to track,” she said on Twitter.
Castor further says that the hackers’ tactics will turn their electronic trail into “a very confusing, windy path to follow.”
“You can move tiny amounts to other exchanges w/ less rigorous KYC, trade for privacy coins like Monero or Zcash, and cover your tracks. If these are professional hackers, they will know exactly how to do it.”
No user funds affected
Binance CEO Changpeng Zhao announced the hack on Tuesday, May 7. Bad actors behind the hack only managed to complete one transaction but were able to steal 7,000 BTC from Binance’s hot wallet as well as sensitive user information.
The company claims that no other wallets were breached and that user funds will not be affected. Binance will be using their Secure Asset Fund for Users (SAFU) to fully cover the loss.