According to Chainalysis, funds stolen from the FTX crypto exchange are now converted from Ethereum.
. On November 20, Chainalysis took to Twitter to encourage exchanges to freeze those coins if the thief tried to convert them into fiat money or further scrambled assets in other ways.
Amid the controversial collapse and bankruptcy of FTX, news emerged that an unknown participant had stolen 228,523 ETH from the exchange. Having these coins, worth $268,057,479 at the time of writing, currently makes the thief one of the largest holders of ETH in the world.
While initial reports suggested that all of the funds in question could be held by securities regulators in the Bahamas, Chainalysis denied this theory, but stated:
“Reports that the funds stolen from FTX were actually sent to the Bahamas Securities Commission are false. Some of the funds were stolen and some sent to regulators.”
At the time of writing, approximately 31,000 ETH has been converted to Wrapped Bitcoin (wBTC). The thief then sent the cross-chain coins to the Bitcoin mainnet wallet using the Ren protocol and received the final amount of 2444.55 BTC.
These have been a tough few weeks for those affected by the collapse of FTX and its affiliates. A press release earlier today showed that FTX borrowers are in talks with financial firm Perella Weinberg Partners regarding various restructuring initiatives. However, the engagement is subject to the approval of the bankruptcy court.
Meanwhile, the company’s founder, Sam Bankman-Freed, is allegedly “under surveillance” in the Bahamas, though some fear he may try to flee to Dubai if given the opportunity. It is unclear how this will play out in the long run, given that there is an agreement between the UAE and the US on the exchange of evidence, judicial cooperation and assistance in criminal investigations and prosecutions.