AscendEX Hackers First Attempt at Laundering the Stolen Money

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There has been a new recent movement by AscendEX hack culprits. As per the data, a series of transactions was noticed on Friday evening from the same address involved in hacking.

Based on the reports, the hackers converted the stolen assets into ether using uniswap. 

Hackers Converted The Stolen Assets Into Ether Using Uniswap
Hackers Converted the Stolen Assets into Ether Using Uniswap

The recipient addresses were promptly banned, and there was little to no activity until today.

PeckShield, a blockchain security firm, has discovered activity originating from one Ethereum address. In their initial attempts to launder the cash, the hackers transmitted around $1.5 million worth of ETH to Uniswap.

Because Uniswap is a decentralized exchange, it has no KYC requirements, which means criminals can mix their currencies and move them to other addresses without being tracked.

For security considerations, AscendEx halted all withdrawals and deposits after the attack, and it took the exchange just over a week to restore all services.

Around a couple of months ago, coincodecap reported the security breach of the three-year-old digital assets trading platform. AscendEX tweeted that it identified that many ERC-20, BSC, and Polygon tokens were transferred out of the exchange’s hot wallets. These assets constituted a relatively small percentage of total exchange holdings. AscendEX cold wallets were as reported unaffected by this incident. 

The estimated loss of AscendEX_Global is $77.7M in total ($60M on Ethereum, $9.2M on BinanceChain, and $8.5M on 0xPolygon).

As suspected earlier, the hacker distributes the funds in small portions to prevent getting tracked. Nonetheless, the internal security team closely monitors the whole laundering process.

This is not the first time a company has fallen victim to such a hack. Somewhere, such a breach puts up a big question mark on the security system of these platforms. The crypto world is undoubtedly the synonym of anonymity, but it needs to game up the blockchain technology in terms of security to make the environment user-friendly.

Shambhavi Soni
Shambhavi Soni

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