The world of cryptocurrency is no stranger to drama, and the recent activities surrounding FTX’s Ether accounts are no exception.
The Ether Movement
Blockchain data has revealed that approximately 2,500 ether (ETH), valued at just above $4 million, linked to the alleged FTX exchange exploit last year, began its movement early this Saturday. Railgun, a privacy-centric wallet that allows users to store tokens and engage in decentralized financial activities like lending and borrowing, was involved. Transactions on this platform are shielded, making the exact purpose of such funds elusive. Simultaneously, Thorchain serves as a bridge enabling users to exchange tokens across various blockchains without exposing their wallets.
Interestingly, the original wallet still holds a substantial 12,500 ETH, which, at current market rates, is worth around $21 million.
The Backstory of FTX’s Ether Accounts
The accounts associated with FTX and FTX US experienced a significant drain on November 11, 2022. This event occurred just hours after the company declared bankruptcy and its founder, Sam Bankman-Fried, stepped down from his leadership role in the crypto domain. The magnitude of this exploit was staggering, with the attacker making away with ether valued at over $600 million at that time. Ryne Miller, the then FTX general counsel, mentioned in a now-removed tweet about the exchange’s “precautionary steps” to safeguard funds in other FTX wallets.
The identity of the individual or group behind the attack remains unknown. Not long after the exploit, a significant portion of the stolen Ether, approximately 21,500 ETH valued at $27 million, was transferred into the stablecoin DAI. A whopping 288,000 ETH still resides in addresses relevant to the attacker.
Upcoming Legal Proceedings
The recent Ether transactions have come to light just days before Bankman-Fried is set to face trial in the U.S. on charges of fraud and conspiracy to commit fraud, as filed by federal prosecutors last December. While Bankman-Fried has maintained his innocence, pleading not guilty to all charges, several former executives from FTX and Alameda Research have admitted guilt. Some of them are even anticipated to testify against their previous leader.
