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Bitcoin [BTC] hack update: Wallet found with stolen 5846.32 BTC (~$34M)

Arijit Sarkar

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Bitcoin [BTC] hack update: wallet found with 5846.32 BTC (~$34M) of the 7000 BTC
Credit: Pixabay

Binance CEO Changpeng Zhao caused a major crypto-panic after officially admitting a large scale security breach on May 7, 2019, involving a hack of 7000 BTCs from the exchange. As Zhao took the breach update to Twitter, prominent figures including John McAfee and Vitalik Buterin showed their support for the exchange and condemned the act.

@thetokenanalyst gave his two cents on the hack after the account claimed,

“We took a quick look at the @Binance hack, and have identified hacker owned wallets (green) that are holding 5846.32 BTC (~$34M) of the 7000 BTC that was stolen. This #BTC has not moved since the hack.”

As a friendly gesture, Zhao responded to the tweet saying,

“Thanks for tracking these.”

Further, Binance has frozen all withdrawals and deposits from the exchange as part of its damage control strategy. Zhao also claimed,



“No users will be effected by the hack, and that the lost funds will be covered by the Secure Asset Fund for Users (SAFU) set up last year.”

The discovery of the wallet that allegedly contains 5846.32 BTC has spread optimism within the crypto community. Many have speculated that the inability to transfer funds across Binance will help narrow down hackers.

While no concrete evidence has been uncovered, the crypto ecosystem is rooting for finding the lost BTCs and punishing the “seemingly untraceable” hackers.





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Huobi, Bitfinex and other exchanges allegedly directly/indirectly linked to laundering/mixing of Bitcoins

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Huobi, Bitfinex, and other exchanges are allegedly linked in laundering/mixing of Bitcoins
Source: Unsplash

On 19 May, 2019, @Whale_Alert tweeted a transaction of 2000 BTCs between Bitfinex and an unknown wallet, which after in-depth research by a Twitter user, confirmed that it was linked with wash-trading, mixing and laundering of funds. The funds circulated over various exchanges like Bitfinex, Binance, Huobi, Coinbase, and others, raise serious questions regarding AML laws and more.

The flagged transaction was sent from 1HL5rZWw5rGzFAB1mThEMxwazEBtWigs7B to two distinct addresses.

The Twitter user, @Proofofresearch, flagged this transaction and revealed the exchanges involved [directly or indirectly]. The user tweeted,

The user flagged a few addresses in the clusters which sent a significant amount of funds, shown in the image attached below.

Source: Twitter | CryptoMedication

The entity 145631092, as seen in the above chart, the funds sent by Huobi from this cluster ended on July 21, 2017. Another wallet “17hf5H8D6Yc4B7zHEg3orAtKn7Jhme7Adx”, linked to having transactions with Huobi has one particular transaction that stands out as it has an op_code named “People! help!”, which was transferred on March 30, 2019.

Source: Smartbit

The wallet address “19V5joogtZCCj3YWcP9pNT8eKLSZybc1Kq” has only four transactions in total. Upon checking the previous transaction for this address, the transaction with hash “bee4795db198230d6baad2e9dbba42b597c635b2471101641cce99e1ff0e91e4” stands out, since it is linked to darknet market places, the user tweeted.

Source: Twitter | CryptoMedication

Further, the address “3M1QVCjXn38AUdUxbLCH4WUZc1ai72ZKgr” that sent funds to the above-mentioned wallet, has a strong connection to darknet market places like the Hydra Market place.

Source: Twitter | Cryptomedication

The source of these funds was directly linked again with Hydra Market place, with the user tweeting,

The Twitter user further alleged that the addresses linked to these clusters were attached to fraud and some user[s] was “selling accounts at Coinbase/Huobi/Bittrex/Binance.” The Twitter user also urged the compliance team of the respective exchanges to close these flagged accounts ASAP.

The user added that all the funds linked to darknet market places were later deposited in Huobi exchange, which according to the user, gets mixed by Huobi.



Additionally, the user added,

“There are zero customers involved in any of these transactions at this point. That much is obvious. These addresses are not functioning as customer deposit addresses. That’s a guarantee. Funds go to Binance/OKex/Poloniex/BTCBox.com… By FAR, Okex is the most frequent recipient of funds from these Huobi-controlled addresses. Please keep in mind that these are not deposit addresses. These are addresses where Huobi is literally mixing the funds and sending them to other exchanges for some reason.”

One particular address connected to Bitfinex in this fiasco, “1LSgEKji3ZoGdvzBgkcJMej74iBd38fySb,” has received 1 million Bitcoins, according to the user. The user added,

“As stated before, Binance/Coinbase/Bitfinex/Huobi/Bittrex/Coinbase/”Bitbank”/Bithumb/OKex are all pals in this laundering scheme together. They mix and mash funds and operate in a symbiotic fashion – replenishing stores when necessary… In this case, Huobi’s hands are dripping if there’s such a thing as catching someone ‘red-handed’.”





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