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Wasabi Wallet Carrying 22% of Bitcoins After Twitter Hack, says Elliptic

In a recent revelation by a crypto crime detective firm, Elliptic found out, few hacked bitcoins during the Twitter hack sent to a wallet address for coin mixing purpose, which is possible of Wasabi wallet.

The report by Elliptic shows approx. 2.89 bitcoins sent for laundering purpose in a Wasabi wallet address on July 17, at 3.39 am UTC.

Wasabi’s privacy Bitcoin wallet is one of the great tools for hackers, money launderers, and retail investors to hide their transaction trails. Using Wasabi Wallet users can take the benefits to hide their transactions from financial institutions from tracing funds on the blockchain and from law enforcement investigations too.

Wasabi Wallet was founded by Adam Ficsor, the co-founder and CTO of privacy development group zkSNACKS. Reportedly, Wasabi uses a CoinJoin tech which can mix the funds from several crypto traders to conceal the identity of anyone particular sender.

However, Elliptic uses an advanced monitoring technology to identify funds information, and … “exchanges can screen incoming funds for links to these wallets,” as per the report.

Dr. Tom Robinson, co-founder and Chief Scientist at Elliptic mentioned that using Wasabi’s wallet isn’t surprising. In most of the hacking incidences, investigations are done via following the money trail to the point of cash out and KYC methods. However, employing a Wasabi wallet makes it easier for hackers to safeguard themselves and makes it difficult for the invigilators to trace the funds.

Robinson mentioned about the blockchain monitoring tools which the monitoring company deploys to catch the transactions on money laundering methods at various stages of transferring the money in a mixing process.

The blockchain monitoring tool provider– “Elliptic has been able to identify the likely use of this (Wasabi) wallet, having built a unique capability to identify Wasabi Wallet addresses based on distinctive transaction patterns.”

As per the information, the hackers would try to cash-out the stolen bitcoins and if the cryptocurrency exchanges deploy Elliptic’s blockchain monitoring tool “they can scan the blockchain and determine the source of the funds for any bitcoin transaction they receive. If our software tells them that the funds originated from the Twitter attack, they are likely to freeze the funds and notify law enforcement. Again, the use of Wasabi Wallet makes this much more challenging for exchanges, since the blockchain trail is no longer visible.” Said Robinson.