Binance hack: stolen bitcoins converted into fiat currency
Bitcoin

Binance hack: stolen bitcoins converted into fiat currency

By Emanuele Pagliari - 16 Jul 2019

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In recent days the criminals responsible for the Binance hack have made a number of transactions to some exchanges to convert the stolen bitcoins into fiat currency.

On May 7th, 2019, the well-known Binance exchange was the victim of a major hacker attack, which resulted in 7,000 bitcoins being stolen. After the Binance hack, the Coinfirm company immediately monitored the address to which the stolen bitcoins were initially sent.

The first movements had already taken place a few hours after the theft, with an initial division of the coins into dozens if not hundreds of different addresses.

Although the amount of theft was quite large, Binance managed to cover all the losses using the SAFU insurance fund.

Binance hack: the hackers are converting bitcoins into fiat currency

Looking at the data reported by Coinfirm concerning the Binance hack, in the last few days, several bitcoin transactions have been carried out towards some of the most well-known exchanges.

These would include Bitfinex, BitMex and even Binance itself. Coinfirm has compiled a list of the amount of bitcoin sent to each exchange and, presumably, traded for fiat currency:

  • Bitfinex: 0.7934 BTC
  • Binding: 0.4294 BTC
  • Bitmex: 0.0022 BTC
  • KuCoin: 0.0713 BTC
  • Kuna: 0.2482 BTC
  • Bitmarket: 0.2560 BTC
  • Crypterra: 0,0072 BTC
  • Bitcoin.de: 0.0007 BTC
  • WazirX: 0.0003 BTC

As can be seen, these are rather small figures, just under a total of 21 thousand dollars

The reason for this is quite simple: for small figures, these exchanges do not require KYC. However, it should be noted that in order to withdraw fiat currency it is still necessary to provide personal data

As such, the organisers of the Binance hack may have simply sent these funds to the main exchanges to convert bitcoins into other untraceable cryptocurrencies, such as monero and zcash, in order to perform an additional undetectable mixing and thus withdraw the funds in fiat currency from other platforms.

Emanuele Pagliari
Emanuele Pagliari

Telecommunications engineer with a strong passion for technology. His adventure in the world of blogging started on GizChina.it in 2014 and then continued on LFFL.org and GizBlog.it. Emanuele is in the world of cryptocurrency as a miner since 2013 and today he follows the technical aspects related to blockchain, cryptography and dApp, also for applications in the Internet of Things.

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