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Sources claim that Coinrail hack loot has already been laundered?

Anirudh VK

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Sources claim that Coinrail hack loot has already been laundered?
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New information has emerged on the Coinrail hack that occurred yesterday. The information suggests that the $40 million stolen in cryptos such as TRX, NPXS, Dent, and Aston X from the exchange has already been laundered into circulation.

The information in question comes from attorney Jonathan Levy, a lawyer from the Cryptocurrency Resolution Trust. The Trust is known for its lawsuit against the Bitcoin Blender Organization, a darknet service that allows users to launder stolen cryptocurrencies to make the detection of the currencies impossible.

The top-level domain is known as bitblender.io and is under the jurisdiction of British Indian Ocean Territory.

On the service, Dr. Levy said:

“Bitblender openly launders Bitcoins for criminals using the .io domain as its only public address. Bitblender concluded that since Indian Ocean Territory consists only of a secret US leased military base, they could operate with impunity. However, BIOT has a court system and we aim to achieve justice. This is the tip of the iceberg, the value of all the Bitcoins laundered by Bitblender since 2013 must be immense.”

The hack in question saw hackers steal around $40 million in tokens from the exchange. They stole $19.5 million in NPXS tokens from the Pundi X ICO project, $13.8 million from Aston X, $5.8 million in Dent tokens and $1.1 million TRX tokens. The service has moved the remaining 70% of their assets into cold storage while they review their security systems.

Some in the cryptocurrency community hold the hack responsible for yesterday’s Bloody Sunday, as the top cryptos bled red on the charts. Top currencies saw drops close to 10% and the market capitalization declined. However, looking at it in an objective manner, Coinrail is an obscure South Korean exchange that might not have caused such a ripple effect in the market.

Levy, however, suggests that this is the case, saying the $40 million has already been processed through the Bitblender service and sold. He also stated that it caused a drop in the price of Bitcoin which was then followed through by the rest of the market.



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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

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