New developments in the Coinrail hack suggests that the $40 million stolen in cryptos from the exchange has already been laundered. The new information comes from attorney Jonathan Levy, a lawyer from the Cryptocurrency Resolution Trust, which is known for its lawsuit against the Bitcoin Blender Organization, a darknet service that allows users to launder stolen cryptocurrencies to make the detection of the currencies impossible.
The attorney said; “Bitblender openly launders Bitcoins for criminals using the .io domain as its only public address. Bitblender concluded that since Indian Ocean Territory consists only of a secret US leased military base, they could operate with impunity. However, BIOT has a court system and we aim to achieve justice. This is the tip of the iceberg, the value of all the Bitcoins laundered by Bitblender since 2013 must be immense.”
Levy suggests that this is the case, saying the $40 million has already been processed through the Bitblender service and sold.
The hack that took place this weekend saw hackers steal around $40 million in tokens from the exchange. They stole $19.5 million in NPXS tokens from the Pundi X ICO project, $13.8 million from Aston X, $5.8 million in Dent tokens and $1.1 million TRX tokens. The exchange has moved the remaining 70% of their assets into cold storage while they review their security systems.
There has been a sharp drop in the price of bitcoin and other virtual currencies after Coinrail was hacked over the weekend. The cyber-attack sent the price of bitcoin tumbling 10% on Sunday to two-month lows. Bitcoin lost $500 (£372) in an hour, dropping to $6,627 on the Luxembourg exchange Bitstamp, while most other digital currencies also recorded large losses.