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Tracking hacked Binance BTC and addressing allegations

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Recently, a few articles like this claimed to trace the illicit funds that were associated with the Binance hack that happened in May 2019. The report stated that the portion of funds was received by various exchange and custody service providers such as CoinGate. We have performed an internal investigation on these matters and have come up with somewhat different conclusions.

coinfirm binance

Part of the graph from the original report, showing the path leading to CoinGate

Upon our investigation of the case with the assistance of our experienced partners at Elliptic, we have no reason to believe that any of the funds we have received were related to the Binance hack.

Even though it was stated in the report that all the addresses that belong to a Bitcoin mixer were spotted, we believe with a high level of certainty that one more address of the infamous mixer was not identified.

Together with Elliptic, we have discovered that the address (starting with 18sCF, which is four steps away from CoinGate) shown on a graph provided by a forensic company that issued the report, is an address which also belongs to a popular Bitcoin mixing service. 

This information was not incorporated in the original report, even though it is a significant obstacle that complicates the tracing of the possible route of the stolen funds.

We take all information related to money laundering, terrorism financing or fraud very seriously. Nonetheless, with the information provided in the aforementioned report, there is no way to associate the funds coming from it to those stolen from Binance. 

CoinGate has contacted the firm that provided the report and the media resources that covered the story in hopes to clarify the situation. We will update this statement if any further information comes to light.