In a series of transactions that has caught the attention of the crypto community, the hacker responsible for the Bitget breach has moved $19.48 million in Bitcoin across 52 transfers between October 21 and October 24. According to blockchain analytics firm Arkham, nearly all of these funds were in Bitcoin, indicating a significant outflow from wallets associated with the exchange’s September security incident.
Arkham’s tracking revealed that during this recent activity, $19.33 million was transferred in Bitcoin, with the remainder in Ether. The transactions took place between 10:02 UTC on October 21 and 02:48 UTC on October 24, with almost all funds directed to new addresses, raising concerns about potential money laundering.
“Is the Bitget Hacker laundering the stolen funds?” Arkham questioned in a social media thread, though they did not specify which exchanges or services were involved in receiving these latest transfers.
In a broader context, Arkham noted that the Bitget hacker has moved a staggering total of $78.01 million to new addresses since October 15. The largest single-day transfer occurred on October 15, when $23.31 million was moved, followed by subsequent transfers of $8.68 million on October 16 and $15.13 million on October 20. The hacker’s remaining labeled holdings are valued at approximately $242.54 million, predominantly in Bitcoin.
Arkham’s analysis estimates that this balance represents 69% of the reported $350 million theft, while Bitget itself estimates the total loss at around $387.5 million, suggesting that Arkham’s figures account for about 62.6% of the total. This discrepancy highlights the complexities involved in tracing stolen crypto assets.
Earlier investigations into the hacker’s activities revealed attempts to obscure the origins of the stolen funds. AMLBot traced some Bitcoin into CoinJoin, indicating a potential strategy to launder the assets. Additionally, Bitquery documented various conversions through platforms like THORChain and Chainflip, although these routes did not clarify the destination of the most recent transfers.
In terms of recovery efforts, Bitget announced that its phased withdrawal restoration process was completed on October 2, and it reassured customers that their balances remained unaffected. The exchange attributed the breach to a vulnerability in a third-party security product, which allowed the hacker to gain high-level internal access and issue fraudulent withdrawal commands.
To mitigate the financial impact of the breach, Bitget’s Protection Fund, which surpassed $300 million by September 30, is set to cover the losses incurred. The exchange has also implemented a recovery program that offers rewards for actions aimed at freezing or recovering the affected assets.
Adding to the grim backdrop of crypto security, security firm Hacken reported a staggering $1.18 billion in crypto hack losses in the third quarter alone, marking a 55% increase from the previous quarter. With Bitcoin trading near $80,666 at the time, the landscape for crypto security remains perilous, emphasizing the need for robust protective measures across the industry.
