A significant portion of pilfered cryptocurrency remains undistributed, according to the data.
Revised Article:
Take a gander at the game hackers and security experts are playing, as a new report from blockchain intelligence firm Global Ledger reveals some eye-opening insights.
Hold onto your crypto hats, because it seems hackers are quick on the draw, outpacing the systems chasing them – at least for now. The savvy bunch at Global Ledger analyze the footprints left by hundreds of on-chain incidents and share their findings with us. One fascinating revelation? In many cases, the stolen goods find their way to launder destinations before the embarrassing hack is even publicly disclosed.
It normally takes about 43.83 hours for the dust to settle after an on-chain breach, with the incident being reported, but the hackers aren't being shy. They've already moved the stolen loot to that first game hub (exchange, crypto mixer, DeFi protocol, and so on) in a mere 46.74 hours.
So, what's the deal with that 78.55-hour gap between the public know-how and the hacker's interaction with the laundering service? Well, it looks like the funds are already in motion before the hack even becomes common knowledge. Spooky stuff, huh?
These sneaky scoundrels have four different timelines in their playbook. Take a look, if you dare:
- Breach to Fund Movement: Quick as a flash, the funds get transferred.
- Breach to Reporting: That's when we start to hear about it.
- Breach to First Entity Interaction: Cozying up to the first stop in the laundering land.
- Public Disclosure to Laundering Activity: The final frontier in fund-tracing and recovery.
Now, let's talk NFTs – those unique digital treasures drawing in the big bucks. Suppose you've snagged yourself an NFT and a nifty little pile of money to boot. In that case, you can expect the funds to sit idle for nearly 24 days; yep, that's more than double the average turnaround in centralized exchange-related hacks.
Fear not, dear reader, Lex Fisun, co-founder and CEO of Global Ledger, offers an explanation: "The delay isn't just about the reduced liquidity of these unique tokens; they're harder to offload quietly." So, there's no strategic mastermind at work here, just some market challenges the hackers need to navigate.
The report highlights that the trail to those laundered funds depends on the type of project pulled off the heist. DeFi platforms see funds flowing through laundering channels within just 230 hours, while payment platforms boast the fastest gameplay: mere minutes.
Other than a few quiet hours, it might surprise you to know that nearly half of the stolen funds remain untouched, indicating excellent opportunities for ongoing tracking and potential recovery.
Now, cross-chain traces have become something of a preference for the true masters of the art. Global Ledger's research indicates that nearly 42% of stolen funds leap across chains to bypass specific monitoring systems.
You probably already know about the infamous Tornado Cash[1], the pick of the bunch for most laundering activities. Despite the U.S. Treasury sanctions in 2022 and the regulators' ever-growing scrutiny, Tornado Cash soldiers on, with its use spiking again after a U.S. court ruling overturned the sanctions in 2024.
Other notable privacy tools, like Railgun and Wasabi Wallet, have also come into play – finding their way into approximately 20% and 10% of laundering flows, respectively.
Wondering why slower movements through centralized exchanges (CEX) aren't a result of better security compliance? You're not alone. Lex Fisun, the wise and knowing Global Ledger CEO, offers guidance: "It's both. A delayed timeline is not a glitch; it's a design, as attackers divide assets, jump across chains, and utilize privacy protocols to snuggle up to CEXs that try to delay shady transactions."
It's fascinating, really, how much can change in the world of finance and security. Keep your eyes on the prize and remember: "Where there's money, there will be hackers."
- Hackers are reported to move stolen crypto funds to their first game hub, such as exchanges, DeFi protocols, or crypto mixers, in a mere 46.74 hours after an on-chain breach.
- The findings by Global Ledger show that funds stolen from NFT transactions remain idle for nearly 24 days, more than double the average turnaround in centralized exchange-related hacks.
- DeFi platforms see funds flowing through laundering channels within just 230 hours, while payment platforms boast the fastest gameplay, with funds being laundered in mere minutes.
- Global Ledger's research reveals that nearly 42% of stolen funds leap across chains to bypass specific monitoring systems, and Tornado Cash is a popular choice among launderers.
- Other privacy tools, such as Railgun and Wasabi Wallet, are also used in laundering flows, finding their way into approximately 20% and 10% of these transactions, respectively.
- The CEO of Global Ledger, Lex Fisun, explains that attackers divide assets, jump across chains, and utilize privacy protocols to snuggle up to centralized exchanges that try to delay shady transactions.
