According to a recent report from Chainalysis—a blockchain analysis software provider, it has been established that just two hacking groups are responsible for the major crypto exchange hacking incidents that have been recorded in the crypto industry.
The Chainalysis Report
According to Chainalysis, two professional hacking teams spearheaded a large portion (60 percent) of the crypto hacking that shook the industry in 2018 and years before. The hacking groups have reportedly carted away not less than $1 billion in all their operations. The report also showed that an average of $90 million was stolen per hacking incident.
“On average, the hacks we traced from the two prominent hacking groups stole $90 million per hack. The hackers typically move stolen funds through a complex array of wallets and exchanges in an attempt to disguise the funds’ criminal origins,” the report explained.
Alpha group and Beta group
The report also grouped the hacking groups into two sections namely Alpha group and Beta group. The Alpha group was recognised as a “giant, tightly controlled organisation partly driven by nonmonetary goals,” and the beta group is labelled as a “less organized and smaller organisation absolutely focused on the money.”
According to the report from Chainalysis, the Alpha group is very quick to move the stolen money right after hacking the exchange. The report recorded an average number of fund movements per hack to about 15,000 transfers. The alpha group also changes up to 75 percent of the stolen cryptos into FIATs within 30 days of hacking.
The Beta group takes its time to change crypto to FIATs. A waiting period of about 6–18 months was reported by Chainalysis. To convert the stolen coins into Fiats, the Beta group tend to target just one exchange and make a huge withdrawal. Cash out of about $32 million has been recorded by the Beta group before.
