Elliptic, a blockchain analytics firm, disclosed that the perpetrators of the recent Binance breach have swapped stolen tokens for approximately $124 million in Bitcoin. The firm estimates that the total value of crypto taken in the hack remains around $3.1 billion, with the majority still frozen. Little of the stolen assets appears to have been liquidated so far.
What happened
According to Elliptic, the attackers moved more than 20,000 wallets across 16 different blockchains to launder the proceeds of the hack. While the bulk of the stolen Ether and Bitcoin has not been transferred, the analysts identified a series of swaps that converted a portion of the loot into Bitcoin worth $124 million. Elliptic also noted that $2.85 billion of the stolen crypto remains frozen in wallets that have not been used for any outbound transactions.
Why it matters for traders
For market participants, the report highlights several risk factors. First, the presence of a large frozen pool of crypto could create a sudden supply shock if the hackers manage to unlock and sell the assets. Second, the use of multiple blockchains and thousands of wallets complicates tracking, increasing the chance of delayed detection of large moves. Third, the conversion into Bitcoin adds pressure to the leading cryptocurrency, which is already experiencing modest price declines, as indicated by a 0.56% dip to $75,639 in the last 24 hours. Traders should monitor order flow and volume spikes in Bitcoin and related derivatives, as any large liquidation could amplify price volatility.
What to watch next
- Regulatory response: US regulators are already probing Binance after the earlier $6.3 billion hack. Further inquiries may focus on the frozen wallets and the cross‑chain laundering techniques identified by Elliptic.
- Exchange actions: Binance has signaled plans to reopen more withdrawal channels. The timing and scope of these reopenings could affect market liquidity and sentiment.
- Movement of frozen assets: Any transaction that unlocks a portion of the $2.85 billion frozen stash would likely trigger heightened trading activity. Watch blockchain explorers for sudden outflows from the identified wallets.
- Broader market impact: If the stolen Bitcoin is sold in large blocks, spot and futures markets could see increased sell pressure, potentially widening spreads and affecting related assets such as Ether and stablecoins.
Sources
- Elliptic says Binance hackers swapped stolen tokens for $124M in bitcoin, exchange plans more withdrawal reopenings (theblock.co)
- $3.1B in Stolen Binance Crypto Has Yet to Be Laundered: Elliptic (decrypt.co)
This is a developing story and will be updated as new information is confirmed. For information only, not financial advice. How we report.
