eXch official statement on recent 4064.37689539 BTC transfer from Genesis Trading Following two recent tweets of ZachXBT who actively reported these 4000 BTC originating from Genesis Trading as "stolen" based only on a presumption, including a statement from some exchange misleadingly branded "NonKYC" that has confirmed it selectively scams its users:
https://twitter.com/zachxbt/status/1825499490956231021https://twitter.com/zachxbt/status/1830918003724103919We (eXch) declare, that up to the date of this publication, despite of numerous completely wrong statements in regards to that event coming from both professional and amateur (Twitter-based) researchers, Genesis Trading did not officially confirm they were exploited or hacked, nor they have reached any competent authorities filing a theft complaint, which would be a first step for a supposed victim to define their funds stolen.
While eXch has received and processed a big stash (around 1500 BTC) of these funds in multiple batches, we were acknowledged that Elliptic (a company considered "industry leader" in chain analysis solutions) issued a notice to all their partners informing that the BTC originating from
bc1qemvgj4vdk9l9stn4978nf3ce47jw8l9xtzm8am is a result of a theft in the following communication:
Elliptic Customer Advisory
Suspicious transfer of $238 million confirmed as theft
Friday, August 23, 2024: Earlier this week, we reported a suspicious transfer resulting in a loss of $238 million.
The Elliptic team has continued to monitor the situation, and has since been able to confirm that this suspicious transfer was indeed a theft, so all funds should be treated as stolen.
As a reminder, your Risk Rules will cover the identified addresses under the ‘Thief’ category and have already been labelled in our tools as ‘Fraud Incident - 5812609684’ and ‘Fraud Incident - 5812609684 (suspected post-swap)’.
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What Actions Do Compliance Teams Need To Take?
We appreciate that speed is critical in identifying any fund flows associated with stolen or flagged addresses. Part of our daily work is to keep your risk monitoring tools up to date.
- Your Risk Rules already cover the identified addresses under the Thief category.
- The identified addresses have been labeled in our tools as 'Fraud Incident - 5812609684’ and ‘Fraud Incident - 5812609684 (suspected post-swap)’.
- Any transactions or addresses linked to this theft and screened through Elliptic will trigger a risk score.
- Over time, our systems may identify additional addresses with exposure to these stolen funds. We recommend using our tools to periodically re-screen wallets and transactions in real-time rather than relying on a static list that may be out-of-date.
We continue to monitor the situation and will add additional addresses to our systems if necessary.
Since that communication was apparently targeting centralized exchanges, we (eXch) have sent an inquiry to that company (Elliptic) in order to get clarifications on that situation. The answer we received from Elliptic consisted in them not being able to provide any details on that matter nor proofs of the eventual hack which for us was a solid sign that they have none.
We then have found a lot of contacts of older and actual Genesis Trading representatives by doing some due diligence on that company and sent them a direct question asking to clarify whether the 4000 BTC transfer was a result of an exploit or not. The answer we got is a complete absence of answer, which for us was a solid sign of that company not being too much worried about that transfer suggesting this was not a hack at all.
Meanwhile, absolutely every blockchain investigation company has marked this address as a "
hack reported by community" with a score of critical risk, suggesting every CEX to freeze any deposits associated with these funds.
The "hack reported by community" tag assigned to that address by every major chain intel company obviously suggest that the only source of their information was this single post on Twitter:
https://twitter.com/zachxbt/status/1825499490956231021Another key point is that
eXch has never received any law enforcement request in regards to these funds which means there is no official investigation ongoing in regards to these funds.
Based on the mentioned above, we at eXch believe there is absolutely no ground to assume these funds were stolen due to lack of evidence and everyone trying to claim the otherwise is simply misleading the general public.
We at eXch will continue to defend truth and operate based on facts instead of assumptions, thus we deny any allegations targeting our project in that regards on various social media platforms.
To those curious about who Genesis Trading are, we suggest to visit their official website and a Wikipedia page about them at the following links:
https://genesistrading.comhttps://en.wikipedia.org/wiki/Genesis_(cryptocurrency_company)UPDATE: After some days from this publication, we got a confirmation from law enforcement officials that it was a heist.
