Cryptopia’s Stolen ETH Sold “On Major Exchange”, Possibly as a Test

The hacker is still in control of the Ethereum (ETH) haul from Cryptopia, and manages to sell some of the funds.

The Ethereum (ETH) funds stolen from Cryptopia exchange are on the move, and around $2,500 worth of tokens were sold “on a major exchange”, shows blockchain analysis by Coinfirm. It is also possible that another 30,000 ETH are waiting to be sold, after being sent to an exchange address. Coinfirm does not point to the exact transaction or mention the exchange. But in theory, knowing this information could freeze the funds and block the hacker from selling.

The startup tracked the wallets on the Ethereum blockchain, discovering the transfers to new addresses.

The discovery arrives just a few days after Cryptopia appointed liquidators to perform their own research on the losses. In the meantime, the exchange holds user funds hostage, as it has locked the wallets for coins that were unaffected by the hack. The market operator opened withdrawals for a limited number of coins, including Bitcoin (BTC), Litecoin (LTC) and Dogecoin (DOGE), but this opportunity lasted only for a few weeks.

Cryptopia was giving signs it would reopen with full capacity after moving its assets to new wallets. In the past, the market has locked wallets for various reasons, including network instability and problems with anonymous coins. But now, withdrawals are locked indefinitely.

The Cryptopia hack may have affected funds worth around $17 million, but the losses of users may be even higher.

Generally speaking, ETH coins are anonymous, and so far there are no concerted efforts to track all the coins from the hack. In the past months since the January hack, multiple tokens were also liquidated, despite the promised support of exchanges, including Binance. On smaller markets, it is still possible to liquidate tokens while remaining anonymous.

The small-scale sale of ETH shows that for any hacker, it is still relatively difficult to liquidate more funds. ETH can be laundered, through the use of miners, which obscures the origin of coins as coming from transaction fees. This is usually done if a miner pays out high transaction fees to himself. But so far, it is unknown if the hacker has access to block production.

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