FTX Funds Move as Thief Converts Thousands of ETH to Bitcoin

FTX Funds Move as Thief Converts Thousands of ETH to Bitcoin

According to analytics firm Chainalysis, funds stolen from the FTX crypto exchange are now being converted from ETH to bitcoin. On November 20, Chainalysis took to Twitter to urge exchanges to freeze these coins if the thief tries to convert them to fiat or further confuse the assets in other ways.

Amid the controversial collapse and bankruptcy of FTX, news has surfaced that an unknown participant has stolen 228,523 ETH from the exchange. Owning these coins, worth $268,057,479 at press time, currently makes the thief one of the largest ETH holders in the world.

While initial reports suggested that all of the funds in question could be held by securities regulators in the Bahamas, Chainalysis debunked that theory, stating:

“Reports that funds stolen from FTX were actually sent to the Bahamas Securities Commission are incorrect. Some of the funds were stolen and some sent to regulators.”

At the time of publication, approximately 31,000 ETH have been converted into packed BTC. 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. Earlier today, a press release indicated that FTX’s debtors were in talks with financial services firm Perella Weinberg Partners regarding various reorganization attempts. However, the engagement is subject to bankruptcy court approval.

Meanwhile, company founder Sam Bankman-Freed allegedly remains “under surveillance” in the Bahamas, though some fear he might try to flee to Dubai if given the opportunity. It is unclear how this situation 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.