FTX hacker converts ETH into BTC as they attempt to cash loot

FTX funds stolen from the bankrupt crypto exchange on 11 November have reportedly been moved, with the thief looking to convert the looted Ethereum (ETH) into Bitcoin (BTC) as part of their cash out strategy. This comes days after FTX filed for bankruptcy, with the native FTX token having dumped more than 90% in a week of chaos for crypto.

Blockchain security and analytics firm Chainalysis announced on 20 November that the hacker had bridged the funds and could attempt to use various crypto exchanges to get their loot off the blockchain.

The firm tweeted on Sunday:

“Funds stolen from FTX are on the move and exchanges should be on high alert to freeze them if the hacker attempts to cash out.”

The official FTX Twitter account also referenced the Chainalysis report, noting that the hacker was using intermediate wallets in their attempt to hide the funds’ movement.

Chainalysis also noted that the stolen FTX funds were not drained into an account controlled by the Bahamas government were not entirely true.

“Reports that the funds stolen from FTX were actually sent to the Securities Commission of The Bahamas are incorrect. Some funds were stolen, and other funds were sent to the regulators.”

The hacker could be looking to mix the funds, Chainalysis added, suggesting the thief might be attempting to make it harder to trace the stolen money.

According to crypto analyst KamikazETH, the hacker has dumped roughly $15 million ETH tokens and was looking to dump a further $12 million early afternoon Sunday. Per the crypto sleuth, the thief was using Wrapped BTC and then renBTC to try to cash out.

By the time of writing, the main wallet used in the heist still had $270 million of the loot.

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