Investigators Uncover Discount Laundering Scheme for Hacked Crypto

• Blockchain investigators track alleged money laundering operation with steep discounts on stolen cryptocurrency from recent exchange hacks.
• The operation involves a Telegram user controlling a wallet with over $6 million in crypto assets.
• The individual offers stolen funds at a 3% discount through a custom Telegram bot.

Blockchain investigators have tracked down an alleged money laundering operation offering steep discounts on stolen cryptocurrency from recent major exchange hacks.

Speaking exclusively to Cointelegraph, blockchain security firm Match Systems outlined how probes into summer 2022 hacks pointed to an individual selling discounted stolen tokens via peer-to-peer transfers.

Analyzing patterns across breaches, researchers identified a Telegram user controlling a wallet with over $6 million in crypto assets. After verifying ownership, the individual offered to sell the funds at a 3% discount through a custom Telegram bot.

Investigators believe fresh crypto ties to recent CoinEx, Stake.com thefts

The self-professed middleman reported original assets sold out, but new hacked crypto would become available in weeks. Investigators believe the fresh inventory suggests ties to recent CoinEx and Stake.com thefts.

Though the individual’s identity remains unclear, researchers narrow his location to Europe based on activity patterns. They theorize he operates as an intermediary, ensuring stolen funds get laundered rather than misused.

The alleged broker exhibited erratic behaviors during interactions, abruptly exiting conversations with odd excuses. His use of small test transactions as proof of wallet ownership also follows hacking group hallmarks.

Offering hacked funds at a discount provides an enticing opportunity for certain corrupt investors to buy devalued assets on the cheap. And the launderer collects an extra cut for scrubbing the crypto.

But the brazen scheme also thrives on the limited tracking of cryptocurrency transactions. Sophisticated analytics tools are required to track stolen funds and connect associated accounts.

For Match Systems, the latest discovery proves comprehensive monitoring can uncover even evasive laundering ploys. But as hacking proliferates, law enforcement cooperation is still essential to matching digital footprints with real-world offenders.

The report sheds light on the intricate chains through which illicit crypto can change hands before reaching exchanges. But increased transparency could make life far harder for those specializing in concealing dirty money.