[2019-05-20] EtherDelta receive Cryptopia hacker funds

[FreeEarnsActivist]

Two other addresses – here and here – received a combined 1010 ETH while another 10 ETH landed in what appears to be a big cryptocurrency exchange deposit address and then went to a hot wallet. This suggests the hackers are preparing to pull cash out via these exchanges:


And few days later.

The Cryptopia hacker recently sent around $1 300 000 (4998.97 ETH) to what is strongly indicated to be EtherDelta in 10 transactions ~500 ETH per tx according to Coinfirm analysis:


Source: https://www.coindesk.com/the-cryptopia-hackers-are-moving-funds-into-at-least-four-wallets
Source: https://twitter.com/Coinfirm_io/status/1131189438720237569

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[CryptoBry]

Wow. I am amazed just looking at the diagram. So there is a very effective way to trace all transactions starting with the hacked accounts or wallets and into the many wallets where the coins flowed through. However, what is also amazing is that there is nothing we can do aside from watching the movement. Sad to know this big reality. I am hoping there can be a small slip where one wallet address is identified to a certain person so that an investigation can be possible. Am I talking some sense here?

[FreeEarnsActivist]

Wow. I am amazed just looking at the diagram. So there is a very effective way to trace all transactions starting with the hacked accounts or wallets and into the many wallets where the coins flowed through. However, what is also amazing is that there is nothing we can do aside from watching the movement. Sad to know this big reality. I am hoping there can be a small slip where one wallet address is identified to a certain person so that an investigation can be possible. Am I talking some sense here?

Exchanges can block transactions - KYC

[Jating]

Well it ED had known the prior addresses of the hackers, they could have block it, but I don't know about their setup and I'm not sure about the KYC procedures if they have implemented it since the founder was charge by SEC last year about operating a unlicensed/unregistered exchanges.

https://www.ccn.com/will-etherdelta-charges-lead-to-the-demise-of-decentralized-crypto-exchanges

[CryptoBry]

Well it ED had known the prior addresses of the hackers, they could have block it, but I don't know about their setup and I'm not sure about the KYC procedures if they have implemented it since the founder was charge by SEC last year about operating a unlicensed/unregistered exchanges.

https://www.ccn.com/will-etherdelta-charges-lead-to-the-demise-of-decentralized-crypto-exchanges

I really doubt if they will be taking some action on this. In my knowledge, decentralized exchanges do not implement KYC or do they? I am wondering as a decentralized exchange, can EtherDelta really block these transactions from happening or will they just pretend that they are not aware of those identified addresses? And will this not be an issue against the current set-up of decentralized exchanges?

[shamc]

What the heck are they going to do in etherdelta, it is just a shit exchange that trades in shitcoins. Good for holders of crap that are desperate to sell their worthless tokens, but then getting stolen eth isn't much better either

[joniboini]

I really doubt if they will be taking some action on this. In my knowledge, decentralized exchanges do not implement KYC or do they? I am wondering as a decentralized exchange, can EtherDelta really block these transactions from happening or will they just pretend that they are not aware of those identified addresses?

IDEX does. And they could block the address from interacting with the contract iirc.

What the heck are they going to do in etherdelta, it is just a shit exchange that trades in shitcoins.

If they really use it, then they might want to launder the money by exchanging it via various coins, and only those with high liquidity. Maybe buy the tokens, sell it again and then transfer the ETH to other address directly via Etherdelta smart contract.