Stolen Binance Assets Flow To Chinese Launderers

A portion of the cryptocurrency stolen in the $6.3 billion U.S. hack of Binance is being moved through Chinese money-laundering networks, according to blockchain analytics firm Chainalysis.

The hackers have been transferring the stolen assets through thousands of digital wallets and across multiple blockchains in recent days in an effort to obscure their origins and locations. 

However, the North Korean hackers believed to be behind the Binance theft are also using Chinese money-laundering networks to convert the stolen Bitcoin (CRYPTO: $BTC) to cash. 

Chainalysis said that it’s tracked hundreds of thousands of dollars worth of crypto from the Binance theft and seen the digital assets flow into the Chinese networks. 

The flows into money laundering networks suggest that hackers are pushing to take funds off of blockchain rails and cash them out, added Chainalysis.

Much of the activity has involved swapping cryptocurrencies and transferring assets between blockchains before converting it into cash that can be extracted. 

The hackers have moved about $500 million U.S. through the blockchain TRON (CRYPTO: $TRX), according to Chainalysis. Attackers have spread that money out across more than 1,000 digital wallets.

Ultimately, the crypto is being laundered within China, according to Chainalysis. 

Binance is working with law enforcement, blockchain intelligence firms, stablecoin issuers, and others to trace and freeze as much of its stolen assets as possible. 

To date, about $3 billion U.S. of the stolen assets are said to have been frozen, which prevents the hackers from moving it. 

Another $2.42 billion U.S. in crypto from the Binance hack remains in Bitcoin and Ethereum (CRYPTO: $ETH) and has yet to be converted into cash. 

However, about $1 billion U.S. of the stolen digital assets have been changed into cash through Chinese launderers, says Chainalysis.

The hack and theft at Binance is the biggest ever recorded in the crypto sector. Binance is privately held and its stock doesn’t trade on a public exchange. 

Bitcoin is trading at $75,000 U.S. on Nov. 6, down 13% year-to-date.