The FTX hacker moved the captured funds to a Bitcoin mixer called ChipMixer.
Crypto analyst ZachXBT has discussed the fate of funds stolen from FTX.
FTX Hacker Uses Bitcoin Mixer
Analyst ZachXBT revealed that the first batch of 360 BTC from the FTX attack was moved to ChipMixer.
Mixer services use cryptocurrencies to hide ownership. Usually hackers make use of such services. This makes it impossible for AML services to track funds.
Update: FTX attacker has started using ChipMixer to launder the funds (so far ~360 BTC) https://t.co/xuiCaajnh8 https://t.co/qsSJs8d8OV
— ZachXBT (@zachxbt) November 25, 2022
Most of the seized BTCs were moved via the Ren Protocol (REN). In a report on the Chainabuse platform, ZachXBT shared details of many addresses on Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Polygon Network (MATIC) used by the FTX hacker.
The hacker seized approximately $477 million worth of funds shortly after FTX went bankrupt.
Another analyst, FatManTerra, came up with an interesting theory about ChipMixer. According to him, this service may be run by US government agencies to demystify Bitcoin and anonymize transfers.
According to the analyst, while the state continues to exert great pressure on Tornado Cash, ChipMixer is still actively used.
🧵 Today, I'm sharing my long-standing theory behind a US government covert operation designed to partially crack Bitcoin privacy and deanonymize transactions. I believe that popular Bitcoin mixer ChipMixer is actually a United States government honeypot. Here's why.
— FatMan (@FatManTerra) November 23, 2022
