Two Hacker Groups Account for 60% of Major Cryptocurrency Exchange Breaches

According to the analytics firm Chainalysis, just two hacker groups are responsible for 60% of all publicly known incidents involving attacks on cryptocurrency exchanges. Researchers estimate that these criminals have stolen nearly one billion dollars to date.

Who Are the Hackers?

The expert report refers to these groups by the code names Alpha and Beta. The larger group, Alpha, is described as a massive organization with strict internal control, and its motives are not always purely financial. In contrast, Beta is much smaller, less organized, and solely interested in monetary gain. On average, a single breach by these groups nets them about $90 million.

How Do They Launder Stolen Funds?

After successfully infiltrating an exchange and stealing funds, the hackers move the money through a complex network of wallets and exchanges to obscure its origin. On average, the stolen funds are transferred around 5,000 times. Typically, the criminals wait about 40 days before starting to convert the cryptocurrency into fiat money.

“Once they feel safe, they act quickly. At least 50% of the stolen funds are cashed out through conversion services within 112 days of the incident, and 75% are cashed out within 168 days,” the report states.

Different Approaches to Money Laundering

The Alpha group is more meticulous about covering their tracks and also cashes out the stolen funds faster. Often, the stolen cryptocurrency passes through 15,000 or more transactions, and 75% of the funds are cashed out within 30 days of the attack. Members of the Beta group, on the other hand, prefer to wait between 6 and 18 months before cashing out.