Arkham Reports Hacker Attack on US Government-Linked Crypto Wallet Worth $20 Million
Cybersecurity Breach
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- In an alarming incident, hackers reportedly stole $20 million from a crypto wallet linked to the US government that contained confiscated funds.
- The sophisticated money laundering scheme utilizes nested exchanges leveraging Binance’s liquidity for fund transfers.
The surge in cryptocurrency utilization has unfortunately been accompanied by an alarming rise in fraud and cyberattacks, underlining significant vulnerabilities within the digital asset landscape.
Threats Facing Government-Linked Crypto Wallets
A recent report indicates that hackers breached a US government-linked crypto wallet containing seized Bitfinex assets.
The blockchain intelligence firm Arkham estimates that around $20 million worth of cryptocurrencies—including Tether [USDT], USD Coin [USDC], and Ethereum [ETH]—was stolen.
The firm highlighted how the stolen stablecoins were quickly converted into ETH and funneled through several addresses dubbed “Binance Deposit.”
“Funds were moved to wallet 0x348, which has started liquidating them into ETH. We believe the perpetrator has commenced laundering operations via dubious addresses tied to money laundering services.”
A surprising wave of humor emerged in response from the crypto community as news broke about this incident.
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An Overview of the Bitfinex Hack Incident
The following explains how Ilya and Heather Morgan orchestrated a major hack targeting Bitfinex?
“>@us authorities arrested them. In 2022, U.S. authorities apprehended them and confiscated these stolen assets—the Justice Department’s seizure marked one of the largest collections of digital properties ever conducted.
On July 2023, both individuals consented to settle charges related to money laundering while pleading guilty against U.S. jurisdiction authority; they are now expected lighter sentences as consequence. Morgan was sentenced effectively serving just 18 months due predominantly her minor role coupled cooperating fully law enforcement during investigation process.
Furthermore Lichtenstein originally facing twenty years expected receive substantially reduced five-year term due willingness work alongside investigators along absence prior criminal history which greatly favors her case profile.
ZachXBT speaks up seeking awareness over Arkham’s assertion dubbing situation “morally reprehensible” outlining core aspect being clear instance theft regardless circumstance surrounding production said funds , he indicated hackers facilitated transaction flow Ethereum averaging $40k each rerouted deposit channel evidently associated with Binance .
However ensuing remarks noted payment assertions depend dependencies layer nesting quarantine tunnel created derive access despite outward appearances suggesting integral reliance binance themselves;.
“It’s not Binance doing it—they’ve adopted nesting exchange approach capitalizing existing liquidity sourced there For transactional value relative ease achieved result without directly leveraging company framework . ””
