Over $8 Million Worth of Bitcoin Stolen From Binance Are on the Move

Francisco Memoria

About $8.78 million worth of bitcoin stolen from leading cryptocurrency exchange Binance earlier this year have recently started moving. Analyzed blockchain data suggests the hacker(s) are either trying to launder funds, or sending out payments to third parties.

According to CoinDesk, research conducted by blockchain analysis firm Coinfirm shows that after shuffling the stolen bitcoin in early May, the stolen funds are now on the move and have been making a series of ‘hops’ that keep on shedding value each time.

Grant Blaisdell, Coinfirm’s CEO, stated about the hack:

The attack was conducted using diversified techniques including viruses and phishing. According to Binance, stolen funds constituted approximately 2 percent of total BTC holdings of the exchange.

As CryptoGlobe covered, the hack saw bad actors steal over 7,000 BTC from the cryptocurrency exchange in one single transaction. To stop users from losing funds, Binance used its Secure Asset Fund for Users, which was established last year after a failed hacking attempt, to cover the losses.

This month, the hackers moved 1,060.64 BTC – worth about $8.78 million at press time – through various transactions that kept on shedding some BTC each time. In the first transactions we can see the hacker moved funds from wallets starting with bc1, associated with Segregated Witness (SegWit), to wallets starting with “1.”

Over the next transactions, the hackers shed hundreds of thousands of dollars worth of BTC from the main 1,000 BTC group, which could suggest they’ve been paying third parties using the stolen cryptocurrency, or are trying to cleverly launder their funds.

One of the hackers’ final transactions was of around 1,021.5 BTC – made after over 40 BTC were transferred to other wallets – and saw them move $150,000 to a separate wallet as well. This reportedly shows the hackers are actively trying to split up their funds into smaller chunks.

The wallets associated with the stolen BTC from Binance are being closely watched, which means the hackers are likely going to have a hard time cashing out, as most cryptocurrency exchanges will likely be on to them.

Bitcoin Continues Correction to the Downside Amid High Stakes — Price Analysis

Colin Muller
  • Short term trend: Good chance for an end to the downtrend soon
  • Medium term trend: Uptrend intact but coming under more pressure
  • Long term trend: Downtrend holding strong, unchallenged

As we correctly forecast here yesterday, Bitcoin (BTC) has completed its consolidation around $8,600 and continued to the downside in an extension of its correction from $9,100. It has entered clear support starting at about $8,200, and there is a decent chance of the correction find a bottom within that zone.

We start on the 4-hour and see that the drop in volume telegraphed today’s move down. The typical 3-wave movement of a correction is likely to find support above $8,140 or thereabouts, with support derived from recent resistance.

Within supportBTC chart by TradingView

The histogram is still pointing down hard at time of writing, implying that momentum is still to the downside and might take a bit more time to bleed off. Of course, all of this assumes that Bitcoin’s movement here is a simple correction and not a trend change; in other words, this assumes that the medium-term trend is still up, which may well turn out to be false.

If we take a look at the daily, we see that the scope for a retracement is liberal within the medium timeframe uptrend, starting on January 3. Price can come down to $7,700 without setting off major alarm bells within this market structure; down, namely, to the “golden pocket” .618-65 area of the Fibonacci scale.

Plenty of roomBTC chart by TradingView

We see that the RSI here is engaging a key inflection point on its scale, around 50%. Ideally, we’d like to see this hold and preserve a strong medium uptrend. The histogram looks alarming here, poised to cross over negative with a decent momentum. It is noteworthy that the last two times we’ve seen this, Bitcoin was bought up at the 11th hour and the medium uptrend preserved.

High stakesBTC chart by TradingView

Finally, moving to the weekly chart, we see the larger picture and the overall risky position that Bitcoin is in. The leading crypto has so far soundly failed to break out of the downtrend it's been in for seven months, and failed to surmount the important $9,100 mark.

At this point, it is threatening to again lose the 21-week EMA; and this would put the 55 EMA into serious question. This week is likely very important for setting Bitcoin’s trend in 2020 – and so far, things are not looking great.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

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