FTX stolen assets on the move as thief converts thousands of Ethereum into Bitcoin

By: Mark Jessy

November 20, 2022 10:51 PM

Reports that the stolen money from FTX was handed to the Securities Commission of The Bahamas were false, says the firm Chainalysis.

The blockchain analysis firm Chainalysis claims that ill-gotten ether from the FTX cryptocurrency exchange is being turned into bitcoin. On Nov. 20, Chainalysis turned to Twitter to encourage exchanges to freeze these coins, should the thief seek to convert them into currency or further conceal the assets through other means.

Amid the contentious fall and bankruptcy of FTX, word came that an anonymous actor had stolen 228,523 ETH from the exchange. At the time of writing, the thief's holdings in ETH were worth an astounding $268,057,479, making him one of the world's top ETH holders.

However, Chainalysis dispelled rumors that all of the monies in question were in the hands of securities regulators in the Bahamas, saying:

"Contrary to rumors, the stolen FTX money were not sent to the Securities Commission of The Bahamas. Some cash were stolen, while other funds were sent to the regulators.”

At time of publication, about 31,000 ETH has been converted into wrapped BTC. The criminal then used the Ren Protocol to transfer the funds cross-chain to a Bitcoin mainnet wallet, where they were ultimately received in the sum of 2444.55 BTC.

The demise of FTX and its affiliates has made for a trying few weeks for everyone involved. Earlier today, a press statement suggested that FTX debtors are in talks with finserv firm Perella Weinberg Partners with reference to possible restructuring attempts. The engagement is subject to the bankruptcy court’s approval, though.

Meanwhile, Sam Bankman-Fried, the company's founder, is said to be "under supervision" in the Bahamas, though others worry he would try to flee to Dubai if given the chance. Even though the United Arab Emirates and the United States have an agreement on evidence sharing, judicial collaboration, and help in criminal investigations and prosecutions, it remains unknown how this situation will ultimately play out.