400B Shiba Inu from Hacked FTX Funds Swapped to Ethereum (ETH).
An address labeled as “FTX Accounts Drainer” appears to have recently converted a whopping 400B SHIB ($3.9M) from the hacked FTX funds to 2,346 ETH ($2.96M), incurring an approximate loss of $1M in the process.
Amidst the escalating FTX hack situation, an address dubbed “FTX Accounts Drainer” just recently swapped 400 billion SHIB tokens worth approximately $3.9M to 2,346 ETH valued at $2.9M on CoW Protocol. Blockchain security platform Peck Shield recently highlighted the development.
“The address 0x59ab…32b labeled as FTX Accounts Drainer has swapped 400,000,000,000 $SHIB (~$3.9M) to 2,346 $ETH (~$2.96M), -$1M,” Peck Shield disclosed in a tweet Saturday, as an Etherscan dashboard revealing the transaction was shared.
#PECKSHIELDALERT THE ADDRESS 0X59AB…32B LABELED AS FTX ACCOUNTS DRAINER HAS SWAPPED 400,000,000,000 $SHIB (~$3.9M) TO 2,346 $ETH (~$2.96M), -$1M PIC.TWITTER.COM/LNPCSLJ7Y6
— PECKSHIELDALERT (@PECKSHIELDALERT) NOVEMBER 12, 2022
Etherscan reveals that the address executed a swap of 400B Shiba Inu tokens to 2,346.2 ETH on the CoW Protocol on November 12, a few hours after the recent FTX hack. The transaction, which saw 400B SHIB dumped at once, appears to have impacted the asset’s price, as Peck Shield disclosed. Shib is currently trading at $0.000009477, down 7%.
Recall that The Crypto Basic recently disclosed a recent hack targeting FTX.com and FTX US, which resulted in the withdrawal of about 593 billion Shiba Inu tokens worth over $5.7M from both platforms in the early hours of Saturday. Following the hack, reports of $1B in missing customer funds on FTX surfaced.
The hack seemed imminent because many investors have sought avenues to take out their funds from FTX.com. The exchange suspended withdrawals in other regions but kept them open for accounts in Bahamas. FTX US was also reported to have suspended withdrawals. Several proponents have solicited help from Bahamian users by sending them funds for taking out. Notwithstanding, this has not been particularly successful, as FTX has suspended transfers between accounts within the platform.
However, some users discovered a way to bypass the roadblock by selling NFTs on the FTX NFT marketplace, as disclosed by prominent crypto influencer Cobie. The Bahamian account had withdrawn up to $21M worth of USDT as of Friday.
This underlines how desperate investors are regarding funds withdrawal, indicating that most of them would resort to risky efforts to achieve this, and desperation often exposes people to exploits.