XRP Forensics, the renowned forensics division of xrplorer, an XRPL-based analytical resource, has been diligently tracking the movements of the stolen funds and shedding light on the hacker’s elaborate techniques.
In a stunning turn of events, the recent Atomic Wallet hack has sent shockwaves through the crypto community, with repercussions extending to the XRP Ledger (XRPL). The breach of 700 XRPL accounts has sparked a race against time for authorities and investigators.
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This is what the Atomic hack looks like on the XRPL. pic.twitter.com/oquXIaJYuj
— XRP Forensics (xrplorer.com) (@xrpforensics) June 23, 2023
XRP Forensics Uncovers a complex web of transactions involving victim accounts
Providing an insightful breakdown of the hackers’ manoeuvres, XRP Forensics has uncovered a complex web of transactions involving victim accounts, the initial account responsible for the theft, and a central amalgamation account. Employing a multi-step process to obfuscate the origins of the stolen funds, the hackers initially consolidated the ill-gotten gains into a central amalgamation account.
From this central account, the hackers embarked on a series of manoeuvres aimed at laundering the funds and evading detection. Their efforts included transferring the funds to new accounts and testing various exchanges, all in an attempt to avoid scrutiny and circumvent advisory lists. However, as investigations unfolded, a more streamlined approach emerged.
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The stolen funds were systematically moved through the Orbit Chain bridge, facilitating the conversion of XRP to KLAY, the native cryptocurrency of the Klaytn blockchain. Subsequently, the KLAY was converted to Ethereum (ETH) before being transferred to the Avalanche blockchain. Finally, the hackers converted the funds to Bitcoin (BTC) and moved them to the Bitcoin network.
Some of the earliest laundering was a bit more chaotic, as they tested several exchanges, ran into walls, tried to move to fresh accounts etc to avoid advisory lists pic.twitter.com/HvhgdBi6lo
— XRP Forensics (xrplorer.com) (@xrpforensics) June 23, 2023
XRP Forensics recently revealed that as of June 23, 9:49 AM (UTC), approximately 14 million XRP had been successfully moved through the bridge. However, their investigations uncovered a significant development: the bridge had ceased operations with approximately 1010 XRP remaining.
This unexpected development set the stage for a decisive move by the hackers. With only approximately 4 million XRP left, it was anticipated that they would conclude their “cleaning up” operations on the XRPL by the end of the day.
However, the hackers surprised investigators by managing to move a staggering 22.18 million XRP just five hours later. Of this substantial value, they funnelled 18 million XRP through the Orbit Chain bridge, leaving experts astounded at the audacity and speed of their actions.
Investigation is ongoing
The ongoing investigation into the Atomic Wallet hack and the subsequent laundering of XRP funds has intensified, with authorities collaborating with XRP Forensics and other industry experts to track down the perpetrators and recover the stolen assets. The speed and complexity of the hackers’ manoeuvres have presented significant challenges for the crypto community, highlighting the need for enhanced security measures and vigilance across blockchain networks.
As the investigation unfolds, industry stakeholders and users are urged to remain cautious and follow best practices to safeguard their digital assets. Security measures, such as employing multi-factor authentication, utilizing hardware wallets, and staying informed about potential risks, are crucial in protecting against such breaches.
The Atomic Wallet hack and the subsequent laundering of XRP funds serve as a stark reminder of the persistent threats faced by the cryptocurrency industry. It is a collective responsibility to bolster security protocols and maintain a proactive stance against malicious actors aiming to exploit vulnerabilities within the ecosystem.