Crypto sleuth debunks 3 FTX hack myths

On-the-job detective ZachXBT has taken to Twitter to clear up what he calls a “lot of disinformation” about the FTX hack and the individuals who may be responsible for it. He has shared the research he did on what he thinks are the three most common mistakes people make about the breach.

The self-proclaimed “on-chain detective” dispelled many rumours in a long message on Twitter on November 20. Rumours circulated that Bahamian authorities were behind the FTX attack, that exchanges were aware of the hacker’s true identity, and that the perpetrator was trading memecoins.
On November 11, the same day that FTX filed for bankruptcy, the cryptocurrency community started reporting strange transactions on wallets affiliated with FTX. These transactions included the movement of more than $650 million out of the wallet.
The Securities Commission of the Bahamas (SCB) issued a statement on November 17 in which it stated that it had ordered the transfer of all digital assets of FTX to a digital wallet owned by the commission around that time. Some people thought that the SCB was behind the alleged “hack,” even though no one has been officially named as the culprit.
However, ZachXBT argued that the 0x59 wallet address associated with the hacker was a blackhat address and was not affiliated with either the FTX team or the SCB because it “began selling tokens for ETH, DAI, and BNB and using a variety of bridges so crypto couldn’t be frozen on 11/12.” ZachXBT’s reasoning was based on the fact that the address “began selling tokens for ETH, DAI, and BNB and used a
“The fact that 0x59 was dumping tokens and bridging sporadically was very different behaviour from the other addresses who withdrew from FTX and instead sent to a multisig on chains like Eth or Tron,” he added. “The behaviour of the other addresses who withdrew from FTX and sent to a multisig on chains like Ether or Tron was much more consistent.”
Zach further mentions that the blackhat wallet spoke with another wallet known as 0x24, which, according to Zach, “had highly suspect behaviour on-chain utilising dodgy services.”
ZachXBT also brought to light the possibility of erroneous information regarding the assertion that “Kraken or other exchanges” had uncovered the identity of the hacker.
Since Kraken’s chief security officer said in a post on November 12 that “We know the identity of the user,” the rumour has been going around.
According to Zach, “In fact,” the person who was labelled as the hacker was probably simply the FTX group securing assets to a multi-signature wallet on Tron using Kraken since the FTX hot wallet had run out of gas and was unable to process transactions.
ZachXBT concluded his argument by addressing the persistent claim that the FTX hacker is involved in the trade of memecoins. This rumour was first brought to light by the blockchain analytics company CertiK.
Instead, the blockchain detective asserts that the transactions on the Ethereum network have been “spoofed.” As evidence, the blockchain detective cites a blog post written in March by an Etherscan community member named Harith Kamarul, who describes how transactions may be faked.


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BitKub CTO Fined by Thai SEC For Insider Trading Offenses

Samret Wajanasathian, the Chief Technology Officer (CTO) of BitKub, has been fined by the Thai Securities and Exchange Commission (SEC) in a rare insider trading case in the local cryptocurrency ecosystem.


According to the English translation of the announcement from the Thai regulator, the total civil fine levied came in at 8,530,383 baht, or approximately $234,000. The SEC alleged that Samret acquired as many as $61,000 worth of KUB tokens well in advance of the announcement of the potential plan by the Siam Commercial Bank (SCB) to take a 51% ownership stake in the trading platform.

As unveiled by the Thai regulator, the acquisition of the KUB tokens was based on insider information that Samret was privy to, and he made a 101% gain when the proposed SCB BitKub collaboration was unveiled later toward the end of last year.


The imposed fine was accompanied by a ban on the Thai digital currency trading platform’s CTO from holding any executive position on a trading platform in the near future. The fined amount involves the refund of the cumulative fund that Samret received as profit as well as the total cost incurred by the SEC in the course of the investigations into the case. 


Should Samret refuse the fines, the SEC said he would be charged to the Civil Court where he will be forced to pay the fines up to the maximum and not below what has been earlier charged by the SEC.


The deal with SCB has been terminated as reported last week as the banking giant said it had better take a step back to allow BitKub to resolve the many regulatory challenges that are hanging over the exchanges. 


It is not clear if the charges brought against Samret Wajanasathian count as one of those being avoided by SCB, the financial institution said it is open to productive collaborations in the crypto space moving forward.

Image source: Shutterstock


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Thailand’s Commercial Bank SCB Terminates Deal to Acquire BitKub Crypto Exchange

Siam Commercial Bank (SCB), the oldest commercial banking institution in Thailand, has announced the effective termination of its proposed deal to acquire the BitKub exchange.


According to the press release shared by the banking firm, the plan to terminate the deal was circumstantial and approved by the company’s board of directors. 

The deal was first announced in November last year, with SCB committed to buying up 51% of the shares of BitKub for over $500 million, an investment that will give it majority ownership. Following the agreement at the time, the bank said it proceeded to conduct due diligence in conjunction with the exchange. 

The bank, however, said it would be terminating the deal because the transaction has some regulatory issues to resolve directly by the Thailand Securities and Exchange Commission (SEC). 

“Whilst the results of the due diligence exercise did not reveal any significant abnormal issues which are irremediable, Bitkub is currently in the process of resolving various issues as per the recommendations and orders of the Securities and Exchange Commission, Thailand, which are uncertain in terms of timeframe in resolving those issues. As a result, the Buyer and the Seller have agreed to terminate the Transaction,” the announcement reads. 

The bank said it remains committed to deepening its footprint in the digital currency ecosystem with future acquisitions. Its growth push in the transaction ecosystem will further complement its venture capital outfit, SCB 10X, which invests in both blockchain-based and Decentralized Finance (DeFi) ecosystems. 

Some companies in the SCB 10X portfolio include but are not limited to Fireblocks, Ripple Labs, The Sandbox, and the currently embattled crypto lender, BlockFi.

Image source: Shutterstock


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Thai Bank SCB Acquires Local Crypto Exchange Bitkub for $536.7M

Thailand’s oldest bank, Siam Commercial Bank Plc (SCB), announced on Tuesday, November 2, that it acquired a majority stake (51%) in local cryptocurrency exchange Bitkub for a deal worth 17.85 billion baht ($536.7 million). - 2021-11-03T170629.446.jpg

Arthid Nanthawithaya, the CEO of Siam Commercial Bank, talked about the development and said that the bank bought the local digital asset exchange Bitkub due to the fact that businesses in the digital asset space have witnessed significant growth over the previous two years and the sector holds massive potential value in the long-term.

With the purchase, Siam bank signalled that it aims to strengthen and grow the digital asset ecosystem in Thailand.

Mr. Nanthawithaya mentioned that the acquisition will “help the SCBX Group create new growth value in the long term amid a new financial world.”

Meanwhile, Jirayut Srupsrisopa, founder and CEO of Bitkub, talked about the acquisition and stated: “We needed to elevate Bitkub to the global level, so we turned to a strong partner like SCB to help us achieve our target faster and more sustainably.”

Srupsrisopa further added that Bitkub crypto exchange has reached the point where it has become an important structure in Thailand’s future economy. “Bitkub is no longer just a startup. It is becoming necessary infrastructure for the financial industry 3.0 in Thailand,” he said.

Siam Commercial bank’s SCB stated that it expects to complete the entire acquisition by the second quarter of 2022.

Bitkub – one of the largest digital asset exchanges in Thailand – stated that the acquisition deal is subject to approval from the country’s Central Bank and the Thai Securities and Exchange Commission (SEC).

SCBX, the country’s fourth-largest bank by assets in Thailand, completed the acquisition when it planned to restructure and grow its new business and financial technologies.

Other banks and firms in Thailand also have made similar moves into the digital asset space.

In August, Bank of Ayudhya Plc – a major bank in Thailand, led an investment funding drive into local cryptocurrency exchange Zipmex.

On August 31, Thai digital asset exchange Zipmex raised $41 million from the country’s fifth-largest lender, Bank of Ayudhya PCL as well as other media firms, including Facebook co-founder Eduardo Saverin’s venture capital firm, B Capital Group as an investor.

In March, KASIKORNBANK (KBank) launched Kubit, a subsidiary or unit, to provide a variety of digital token offerings in the Thai public market.

Other companies, such as the Brooker Group Plc financial consultancy firm, have made crypto assets such as Bitcoin as part of their investment strategy.

Thai Crypto Trading

As of September 2021, Bitkub is the leading cryptocurrency exchange in Thailand, around 72% of local users who trade crypto assets use the digital platform. Bitkub has become extremely popular due to the firm’s aggressive marketing campaigns as well as its inclusive platform designed for non-tech users.

Early this year, Bitkub, the most heavily trafficked cryptocurrency exchange in Thailand, announced plans to stop accepting new customers to address issues recently identified by market regulators.

In April, the Thai Securities and Exchange Commission ordered Bitkub to stop accepting new clients until it enhanced its technical infrastructures to cope with high levels of customer demand.

The suspension covered all onboarding stages, including clients’ registration, pending applications, and identity verifications processes.

The regulator also issued improvement orders for the exchange after users were blocked from trading during January’s significant spikes of crypto prices.

Image source: Shutterstock


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