AFX Trade Attacker Moves Stolen Funds: Converting ETH to BTC via Cross-Chain
The security incident involving AFX Trade has taken a significant new turn. According to monitoring data published by on-chain analyst Yu Jin on July 25, the perpetrator behind the exploit has initiated steps to move and convert the stolen assets across different blockchain networks.
Background: Massive USDC Theft and Initial Conversion to ETH
The incident began two days prior with an attack on AFX Trade's cross-chain bridge, resulting in the theft of 24.15 million USDC. These stablecoins were swiftly converted by the attacker into approximately 12,500 Ethereum (ETH), marking the first major asset transformation.
Latest Development: Cross-Chain Conversion to Bitcoin Begins
After accumulating a substantial amount of ETH, the hacker's activity has continued. Monitoring indicates that roughly an hour ago, the attacker began utilizing the decentralized cross-chain swap protocol THORChain to convert the Ethereum holdings into Bitcoin (BTC).
Confirmed transactions so far include:
- ETH Converted: 655.4
- BTC Received: Approximately 18.86
- Protocol Used: THORChain
This move signals a strategic shift of the stolen funds from the Ethereum ecosystem to the Bitcoin network.
Security Implications and Investigation Hurdles
Cross-chain conversion from ETH to BTC is often employed to complicate the tracing of illicit funds. The distinct privacy characteristics and address system of the Bitcoin network can pose additional challenges for investigation and potential asset recovery. Security analysts note that such cross-chain maneuvers are a common tactic for obfuscating the trail of stolen cryptocurrency.
The community and security firms are closely monitoring subsequent fund movements. The scale and value of this conversion suggest a systematic execution of the attacker's fund dispersal strategy.