Bitcoin stolen during Kucoin exchange hack is being moved through transaction mixer: Elliptic


Bitcoin connected to September's hack of crypto exchange Kucoin is on the move, according to blockchain analytics firm Elliptic. 

Tom Robinson, chief scientist and co-founder of the blockchain analytic firm Elliptic, told The Block that the stolen funds began moving earlier this week. "The Kucoin thief has now started to move the stolen bitcoins. The process is ongoing, but of the 1,008 BTC stolen, 425 BTC have now been sent to ChipMixer, a mixing service. This started on Monday morning," he said.

ChipMixer provides transaction mixing services, which provide the means to obfuscate the source of cryptocurrency funds by mixing them with others and creating wholly new transaction outputs. 



Source: Elliptic.

ChipMixer allows users to deposit Bitcoin into the service and receive so-called "chips" that add up to the same amount. Users can split and merge their chips before withdrawing again. It offers the ability of users to make "bets" that may double the size of a particular chip, or use a chip to donate.

"Even if blockchain analysis may assume you will receive permutation of chips, they cannot predict how much you've lost / won betting or how much you've donated," the service contends in an FAQ post. 

The September 26 hack resulted in the loss of more than $200 million in cryptocurrency, though the exchange's leadership has since claimed that the bulk of the amount stolen has been returned. 

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC