Binance Hacker Still Laundering Stolen Funds through Mixers 14

Binance Hacker Still Laundering Stolen Funds through Mixers

The Binance exchange hack in May proved to many the fragility of internet security, even to an exchange as large as this one. In current day value, the loss stands at almost $80 million USD.

According to Luxembourg-based cryptocurrency capital flow research team, the hacker responsible for the May security breach is continuing to render his spoils untraceable with the usage of mixing services.

The Clain research team states that the 7,074 BTC of stolen funds are being laundered by means of mixing service Chipmixer. Clain reports that since June 12th, 4,836 BTC have been laundered through the service by the hackers. They also report that 814 BTC of the total 4,836 are likely to be confirmed as a result of the hack.

Bitcoin mixing services are used to mix crypto funds with the funds of other users. Due to the method in which distributed ledger technology (DLT) cryptocurrencies function, transactions are eternally attached to the ledger, making mixing services such as Chipmixer paramount to obscuring a trail of transactions.

According to Clain’s report, Chipmixer had never before handled such high volume activity, leading the team to conclude that the majority of funds currently being outputted from Chipmixer stem from a single source: the Binance hacker. Chipmixer’s capital flow has spiked in weeks as shown in the image from Clain’s report:

Binance Hacker Still Laundering Stolen Funds through Mixers 15

At present time, there is no conclusive evidence to support any transfer of funds from the hacker onto exchanges. It is unlikely that any of the stolen funds have yet made their way onto the open market, although that may change once the hacker feels content with his obfuscation of the trail from the Binance hack.

In addition to laundered money from the Binance attack, Clain also detected at least 1032 BTC attributed to the earlier hack of BitPoint. Investigations are in process to conclude on the current state of these funds.