Part of the Bitcoin (BTC) coming from the hack of crypto fair Kucoin is on the move. This suggests blockchain analysis company Elliptic.
Reportedly, the hackers are trying to erase the traces with a mixer.
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Almost two months ago it became clear that a lot of Bitcoin had been stolen from Kucoin’s hot wallet. In total it would amount to more than $200 million. The fair wrote in one of their reports that besides Bitcoin also a lot of Ether and other ERC-20 tokens had been stolen from the hot wallets. The assets in the cold wallets did remain safe.
These ERC-20 tokens quickly went through UniSwap. So they were kind of laundered and exchanged for other crypt currencies. But the hackers also got their hands on 1008 BTC. These are now also mixed.
According to Tom Robinson, researcher and co-founder of the Elliptic, the stolen Bitcoin were moved earlier this week.
„Kucoin’s thief has now started moving the stolen Bitcoin. The process is underway, but 425 of the 1008 stolen BTC have now been sent to ChipMixer, a mixing service. This started on Monday morning“
ChipMixer makes it possible to mix UTXO’s with those of other people. This way you can (partially) obscure the origin of the coins. You throw as it were your Bitcoin on a pile with someone else’s and then get that of someone else back. In this way, there is no longer a real relationship between the new and the old output.
With ChipMixer, users can deposit their Bitcoin and receive so-called „chips“ that amount to the same amount. Users can split and merge their chips before withdrawing them again. This allows users to place „bets“ that can double the size of a particular chip. You can also reduce this number by donating them to other people.
„Even if you assume with the analysis of the blockchain that there are changes with these chips, we cannot predict how much people have lost or won or how much you have donated.
Part of the total $200 million stolen money has already returned to Kucoin because other scholarships have confiscated it. This is undoubtedly one of the reasons why the hackers use both the decentralized UniSwap and ChipMixer.