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Dump incoming? Rogue BTC-e sends $165 million worth of Bitcoin to personal wallets and exchanges

After a year they are almost dormant Bitcoin-Funds of rogue exchange BTC-e on the move again. Chainalysis, an American Blockchainanalytics firm headquartered in New York City, reports that 10,000 BTC worth approximately $165 million were transferred.

The target of the transactions are personal wallets, exchange deposit addresses and other services. Remarkably, the transfer is the largest payout since April 2018.

BTC-e was a crypto exchange founded in July 2011 and shut down in 2017 due to a joint investigation by the US Secret Service and the FBI. According to the allegations, BTC-e was instrumental in money laundering for ransomware attacks.

As NewsBTC reported, security researchers estimated that BTC-e was responsible for 95% of all ransomware payments and their conversion into fiat currencies.

Russian citizen and BTC-e co-founder Alexander Vinnik was also allegedly involved in the theft of 530,000 of the more than 800,000 bitcoin stolen from Mt. Gox. After two years in France, Vinnik was extradited to the United States in August.

As Chainalysis notes, BTC-e still held a significant amount of Bitcoin at the time of its closure in 2017. In April 2018, BTC-e moved more than 30,000 Bitcoin from its serviceWallet. About $50 million of that went to the now-sanctioned OTC switch Suex.

BTC-e scammers about to sell their bitcoins?

Since then, the masterminds of the fraudulent exchange have been relatively quiet. As recently as October 2021, BTC-e sent over 100 Bitcoin worth more than $6 million to personal wallets and eventually to multiple exchanges “serving Russia and other Eastern European countries,” according to Chainalysis.

Yesterday’s transaction appears to be the tip of the iceberg and a long-planned move. BTC-e scammers started withdrawing already a month ago cryptocurrencies. On Oct. 26, both BTC-e and its successor exchange, WEX, sent small amounts of bitcoin to Webmoney, a Russian electronic payment service.

Then, on November 11, BTC-e conducted a test by indirectly transferring 100 Bitcoin to an exchange. After seemingly succeeding, BTC-e pulled back yesterday’s big move.

Dump incoming?  Rogue BTC-e sends $165 million worth of Bitcoin to personal wallets and exchanges, Crypto Trading NewsBTC e-transaction as created by Chainalysis. Image: Chainalysis.com

Chainalysis concluded that about 9,950 bitcoin remains in the scammers’ personal wallets, “while the remainder was moved through a series of intermediaries to four deposit addresses at two major exchanges. In the case of exchange 1 pictured above, our analysis suggests that a Russian exchange may have acted as an intermediary to launder this BTC e-money.”

CryptoQuant CEO Ki Young Ju confirmed that the BTC came from the criminals linked to the 2014 Mt. Gox hack. “They sent 65 BTC to Hitbtc a few hours ago, so it’s not a government auction or anything,” he said. Ju requested the exchange to suspend the account due to suspicious activity.

7 year old $10,000 BTC moved today.

No wonder it originated from criminals like most old bitcoins. It is the BTC e-wallet associated with the 2014 Mt. Gox hack.

They sent 65 BTC to @hitbtc a few hours ago, so it’s not a government auction or anything. pic.twitter.com/Sp2higUqbq

— Ki Young Ju (@ki_young_ju) November 24, 2022

So, in the short-term, the BTC-e scammers don’t appear to pose a threat as they are once again dumping smaller amounts of BTC. Meanwhile, the bitcoin price is struggling with the crucial one Resistance at $16,000.

Dump incoming?  Rogue BTC-e sends $165 million worth of Bitcoin to personal wallets and exchanges, Crypto Trading NewsBitcoin is facing a key resistance at $16,600 on the 15-minute chart. Source: TradingView


Source: Crypto News Deutsch

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