• Blockchain analytics firm Elliptic traces Russian connection in FTX’s stolen fund laundering.
• $475 million hack on FTX exchange surfaces murky ties to Russian actors.
• Funds associated with Russian criminal networks, but hacker identity remains in shadows.

Elliptic’s investigation into FTX’s massive crypto theft points to possible Russian involvement in laundering, intensifying the plot behind the $475 million heist.

The Aftermath of FTX’s Hack: Searching for Culprits

Days subsequent to FTX’s devastating collapse, the exchange was met with another blow — a hack leading to a $475 million loss. Elliptic, at the forefront of blockchain analysis, dived deep to uncover the culprits. Their findings revealed an intriguing trail connecting the stolen assets to Russian criminal entities.

Tracing the Stolen Funds: The Russian Connection

Post-hack, $74 million swiftly moved through RenBridge, affiliated with FTX’s sister company, Alameda Research. A significant portion of these funds, specifically 2,849 out of 4,536 bitcoins, passed through mixers, notably ChipMixer. Elliptic’s analysts found these assets intermingling with funds associated with Russian ransomware groups and darknet marketplaces. This connection strongly indicates the potential involvement of a Russia-linked intermediary in the laundering process.

Recent Movements and Suspicious Affiliations

While most of FTX’s stolen assets lay untouched, a significant chunk resurfaced just before the Bankman-Fried trial, with 72,500 ETH converted to Bitcoin via THORSwap. Even after THORSwap suspended its operations, the perpetrator found ways to continue laundering through THORChain. Strikingly, these funds later passed through Sinbad, a mixer connected to North Korea’s notorious Lazarus Group. Elliptic, however, leans towards a Russian connection, given the less complex laundering tactics observed.

Hacker’s True Identity: A Web of Speculations

The quest to uncover the hacker’s true identity remains riddled with challenges. Speculation is rampant, with theories ranging from FTX’s internal involvement to direct suspicions against Bankman-Fried. However, some events provide a potential alibi for Bankman-Fried, especially when $15 million of the stolen assets were moved during a period he was reportedly offline and in court.

Conclusion

As the crypto world grapples with the fallout of FTX’s massive hack, Elliptic’s findings introduce a fresh layer of intrigue, pointing towards possible Russian involvement in the laundering saga. While the identity of the hacker remains an enigma, the developments shine a light on the intricate web of connections in the crypto underworld, emphasizing the importance of robust security and vigilance in the ever-evolving digital currency landscape.