$6 Million in Stolen Binance Bitcoin Is On the Move Again

A series of hops and "payments" shows that the Binance hackers are working to access some of their stolen millions.

Jun 13, 2019 at 8:30 p.m. UTC
Updated Sep 13, 2021 at 9:18 a.m. UTC

Hackers are now accessing wallets containing cryptocurrency stolen from Binance in May. Coinfirm, the company that tracked the original few moves in early May has spotted a massive outflow from the original hoard of wallets created on May 7, 2019.

Coinfirm's co-founder., Grant Blaisdell, wrote:

The attack was conducted using diversified techniques including viruses and phishing. According to Binance, stolen funds constituted approximately 2 percent of total BTC holdings of the exchange. In order to prevent user’s funds from being affected and guarantee stable work of the platform, Binance used its SAFU fund to cover the loses. The Secure Asset Fund for Users was established on July 14, 2018 and consists of 10 percent of all trading fees.

According to Coinfirm, the hackers then moved 1,060.64474480 BTC or $6,148,122.40 in a number of hops, shedding value each time. On June 7, 2019, the hacker moved the $6 million from this wallet, called bc1q2r..., to this wallet, bc1q65..., shedding an odd $15.84 dollars into this small wallet and adding $2 million to the total. It's not clear why this small an amount "hopped" out of the wallet.

The next hop moved 1,040.95915580 BTC ($8,242,840.00)  into this wallet, shedding $155,861.00 into another wallet, 1JSfJ.... This shows a concerted effort to break up the bigger wallets into smaller chunks.

Finally, Coinfirm saw a final hop of 1,021.53182514 BTC ($8,089,010.00) into this wallet, again shedding $153,835.00 into this wallet. The remaining BTC ended up in "bc1qcgwn2nv906k3rws803zhxwq3crfgjvnzjejgyq" and has not moved since.

This pattern of hops and "shedding" suggests either some sort of side payment to other parties or further efforts at laundering the cash using what appears to be a series of calculated moves aimed at scrambling the source of the funds. Given each of these wallets are now being watched carefully by legitimate exchanges it could be quite difficult - but not impossible - to convert these wallets to fiat.

Image via Shutterstock.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
US Appeals Court Orders SEC to Bring Enforcement Actions to Jury Trials

The 5th Circuit Court of Appeals found that the targets of SEC enforcement actions had their constitutional rights violated by the use of in-house judges.

The 5th Circuit Court of Appeals found that the targets of SEC enforcement actions had their constitutional rights violated by the use of in-house judges.

2
First Mover Asia: Pine Wants to Test the Liquidity of the NFT Market; Cryptos Are Well-Red

The number of users on NFT markets is at its lowest point this year, but still higher than in 2021. The crypto lending platform sees an opportunity.

The number of users on NFT markets is at its lowest point this year, but still higher than in 2021. The crypto lending platform sees an opportunity.

3
CFTC Chair Indicates Agency Will Increase Crypto Enforcement: Report

Rostin Behnam said the agency was facing a rapidly increasing number of cases and would add resources to address crypto fraud.

Rostin Behnam said the agency was facing a rapidly increasing number of cases and would add resources to address crypto fraud.

4
LimeWire Signs Deal With Universal Music for Music NFT Licensing, Blockchain Gaming in Focus

The most valuable crypto stories for Wednesday, May 18, 2022.

The most valuable crypto stories for Wednesday, May 18, 2022.