Some part of the funds collected through the Twitter Hack this week appear to be on the move claims Elliptic, a Bitcoin wallet address tracing service firm.
Thank you for reading this post, don't forget to subscribe!
According to the data shared by Elliptic covering the crypto wallets used in the Twitter security breach, about 22 percent of the Bitcoin was moved last night.
The scam involved a hack targeted at high profile verified twitter users, where victims accounts were used to request for funds in form of COVID-19 package etc. They hackers ended up defrauding many users of their funds.
The hackers made a fortune amounting to $123,000 in Bitcoin at the time of hack. About 2.89 BTC wqs transferred late last night to an address Elliptic believes is a Wasabi Wallet.
Quick Facts About Wasabi Wallets: It allows users to bypass the transparency and traceability assured by bitcoin’s public blockchain. This is achieved by mixing up the transaction trail, hence making it difficult to be traced by authorities.
Wasabi wallet makes it hard for tracking services to pin down where a transaction came from.
According to an emailed statement shared with Coindesk. zkSNACKs, the firm which makes the wallet said, “Although it is sad that there are dishonest people using our product, the truth is that for every 1 person utilizing our CoinJoin service for malevolent purposes, there’s another 100 people utilizing it for the right reasons.”
What is Wassabi Wallet:
It is an open-source, non-custodial, privacy-focused Bitcoin wallet for Desktop, that implements trustless CoinJoin.
What is CoinJoin: It is a mechanism by which multiple participants combine their coins (or UTXOs — Unspent Transaction Outputs are the result of a transaction that a user receives and is able to spend later on) into one large transaction with multiple inputs and multiple outputs.
Someone trying to trace the output cannot determine to which input it belongs to, and neither can the participants themselves be able to trace back without prior knowledge.
The CoinJoin mechanism makes it difficult for third party tracing services to trace where a particular coin originated from and where it was sent to (as against the regular bitcoin transactions, where we only have one sender and one receiver).