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$4 Million Stolen in FTX Hack Reappears in Cryptocurrency Circulation

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Sarah Pereez
Sarah Pereezhttps://lahorelives.com
With almost 3 years of experience in journalism, Sarah Pereez has joined Lahore Lives as a Editor in 2023. She has previously worked as an Entertainment journalist, covering Hollywood & Bollywood news. At Lahore Lives, she tracks news updates, edit articles and write copies for science and technology.

Approximately $4 million worth of cryptocurrency that was stolen from the FTX exchange last year has resurfaced, according to recent blockchain data. As reported by Coindesk, the blockchain records reveal that approximately 2,500 ethers, which were linked to a prior, more significant security breach at FTX, began to move on the early morning of Saturday, September 30.

The report indicates that this ether, previously held in a wallet associated with the FTX security breach, has started circulating after nearly a year of dormancy. The stolen funds were divided into smaller portions and transferred through multiple transactions.

A significant portion of the stolen funds, around 1,200 ether, was moved using the Railgun privacy wallet, which obscures transaction details, making it difficult to discern how the funds will be used. Another 700 ethers were transferred using the Thorchain router, which facilitates the exchange of tokens across different blockchain networks.

The initial security breach occurred on November 11 of the previous year, involving approximately $372 million. This incident happened shortly after FTX declared bankruptcy. Following the breach, the Department of Justice initiated a criminal investigation into the theft, led by its National Cryptocurrency Enforcement Team.

Coindesk notes that there is still approximately 12,500 ETH, equivalent to roughly $21 million at current market prices, remaining in the original wallet associated with the security breach.

This development concerning the stolen cryptocurrency comes just days before Sam Bankman-Fried, the founder of FTX, is scheduled to stand trial on charges of allegedly using the company for personal financial gain.

Additionally, it’s worth noting that the crypto industry has seen little progress in terms of regulatory measures in the nearly 11 months since FTX’s collapse. Only two crypto-related bills have made it through congressional committees, one aimed at regulating stablecoins and the other defining the classification of digital tokens as commodities or securities. Both of these bills have faced significant opposition.

Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission, reiterated his long-held stance during a recent testimony before the House of Financial Services Committee. He stated that most cryptocurrencies should be considered unregistered securities, and many crypto companies in the United States are operating outside the bounds of regulatory compliance.

The absence of comprehensive crypto legislation by lawmakers coincides with an increasing interest from private issuers in the crypto sector. For instance, Visa expanded its stablecoin settlement capabilities by partnering with Circle’s USDC stablecoin and introducing pilot programs with merchant acquirers Worldpay and Nuvei. Meanwhile, PayPal introduced its PayPal USD (PYUSD) stablecoin on the Venmo platform.

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