Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent news of a United States Government linked wallet being hacked with over $20 million worth of crypto drained.
US Government Wallet Hacked
Hackers have managed to drain $20 million worth of USDT, USDC, aUSDC, and ETH from a cryptocurrency wallet linked to the United States government. The wallet had held Bitfinex seized funds and was hacked on Thursday the 24th of October. This was reported by blockchain intelligence firm Arkham and they noted that the hackers converted the stolen funds in ETH before being deposited into multiple addresses labelled “Binance Deposit.” Arkham believe the hacker(s) have already begun to launder the stolen funds via a number of suspicious addresses associated with money laundering services.
Link: https://x.com/ArkhamIntel/status/1849537146861859120
Arkham also went on to note that mere minutes before the transfers, the United States government had withdrawn $5.4 million out of Aave. It was the first bit of activity on the address in 8 months. The government also withdrew $1.12 million of Tether (USDT) from Aave.
Link: https://x.com/ArkhamIntel/status/1849502380326310332
The pseudonymous blockchain sleuth ZachXBT responded to the post by Arkham regarding the hack and noted it appeared “nefarious.” He went on to state that the flow of funds is a result of theft.
The funds which were hacked are the seized funds of hacker duo Ilya Lichtenstein and his wife Heather Morgan. Back in 2016 they stole 120,000 Bitcoin, which is currently worth around $8.2 billion. The United States law enforcement officials seized the stolen crypto assets and the United States Department of Justice considered it the largest ever crypto seizure at the time.
As investigations increased it has been noted that wallet hacked on Thursday had received millions of dollars from government-linked funds. It apparently used 1inch, an exchange aggregator, to swap stablecoins for Ethereum. ZachXBT noted that the hacker(s) shuffled Ethereum in $40,000 chunks to a deposit address for the crypto exchange Binance. He went on to clarify that it was not the actual Binance exchange, but “a nested exchange which uses Binance for liquidity.”
Have a great day.
Peace. CryptoGod-1.
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