Summary
In a recent report, Elliptic, a blockchain analytics firm, has revealed that the hackers who stole over $100 million worth of cryptocurrency from Atomic Wallet have started laundering their loot through the sanctioned Russian-based exchange Garantex.
Details
The hackers first targeted Atomic Wallet on March 2, 2023, when they exploited a vulnerability in the wallet’s code to steal over $100 million worth of cryptocurrency, including Bitcoin, Ethereum, and Tether.
The hackers then began laundering their stolen funds through a variety of exchanges, including Binance, Huobi, and OKEx. However, in late March, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) imposed sanctions on Garantex, citing its role in facilitating cryptocurrency transactions for sanctioned entities.
As a result of the sanctions, Garantex is now prohibited from doing business with U.S. persons or entities. However, the hackers appear to have been undeterred by the sanctions and have continued to use Garantex to launder their stolen funds.
According to Elliptic, the hackers have laundered over $20 million worth of cryptocurrency through Garantex since the exchange was sanctioned. The funds have been transferred to a variety of wallets, including those belonging to known criminal organizations.
The use of Garantex by the Atomic Wallet hackers is a concerning development, as it suggests that the exchange is still being used by criminals to launder cryptocurrency. This could potentially make it easier for sanctioned entities to access the global financial system.
Impact
The use of Garantex by the Atomic Wallet hackers could have a number of negative impacts, including:
Facilitating the flow of cryptocurrency to sanctioned entities
Making it easier for criminals to launder cryptocurrency
Undermining the integrity of the cryptocurrency ecosystem
Recommendations
The following recommendations could be made to mitigate the risks associated with the use of Garantex by the Atomic Wallet hackers:
OFAC should continue to monitor Garantex’s activities and take further action if necessary
Cryptocurrency exchanges should implement stricter AML/KYC procedures to prevent criminals from using their platforms
Cryptocurrency users should be aware of the risks associated with using exchanges that have been sanctioned by OFAC
Conclusion
The use of Garantex by the Atomic Wallet hackers is a concerning development that could have a number of negative impacts. It is important for all stakeholders in the cryptocurrency ecosystem to take steps to mitigate these risks.
