That’s How Bitcoin Hackers Transferred $ 4 Million
The UK-based cryptocurrency exchange EXMO was hit by a hack earlier in the week. Hackers stole over $ 10 million in Bitcoin (BTC), Ethereum (ETH), XRP and other cryptocurrencies from Exmo. New findings have revealed how hackers laundered some of the funds they stole.
British cryptocurrency exchange EXMO was rocked by a fraud shock on December 21st. EXMO has detected suspicious cryptocurrencies in some online wallets. Among the cryptocurrencies stolen were assets such as Bitcoin (BTC), XRP, Ethereum (ETH), Tether (USDT) and Zcash (Zec). Although the value of the funds seized by the hackers has not been definitively disclosed, it is suggested that the amount stolen exceeded $ 10.5 million, equivalent to 5% of the stock market’s total assets. The hackers successfully laundered some of the money through another cryptocurrency exchange, Cointelegraph reported today.
On December 21, EXMO announced that it had stopped all withdrawals on the same day, explaining that it had been targeted by hackers. On December December 23rd, the stock exchange announced that it would activate withdrawals for some major cryptocurrencies between December 25th and 26th.
They laundered the cryptocurrencies they stole through this exchange
According to a new statement by EXMO executives, hackers targeting the exchange managed to launder $ 4 million worth of cryptocurrency through the Poloniex exchange. Laundered cryptocurrency funds have been cashed out by hackers, making it impossible to recover.
EXMO said the hackers moved the funds to 2 addresses on the Poloniex exchange on the day they carried out the attack. A Poloniex spokesman said that when they contacted the EXMO team, the money in the identified accounts had already been withdrawn. According to EXMO’s research, the hackers withdrew about $ 1 million worth of XRP and $ 2.8 million worth of ZEC from the Poloniex exchange.
Is there an openness to Poloniex security policies?
EXMO executives claimed there was a loophole in the Poloniex exchange’s security policies behind about $ 4 million of laundered money. According to EXMO, Poloniex may not have exercised due diligence in its AML (anti Money Laundring) and KYC (Know Your Customer) principles. EXMO also submitted a report to the Central Bank of Seychelles regarding Poloniex, whose headquarters were moved to Seychelles from the United States.
Poloniex, on the other hand, denied these accusations, saying that everything was done according to his book. Poloniex said its platforms adhered to strict procedures for monitoring, detecting and reporting possible money laundering and financial crimes. Poloniex, which said that they use industry-leading software for operations such as identifying and verifying opened accounts, also explained that the accounts in question were created more than 4 weeks ago in accordance with the standards.