Planet Money cover image

Planet Money

How to launder $600 million on the internet

Sep 16, 2023
Erin Plante, a private detective specializing in stolen cryptocurrency, investigates the largest crypto heist in history where hackers stole $600 million from Axie Infinity. The investigation unveils alarming actions by digital money launderers. The aftermath reveals national security threats and North Korea's use of crypto to bypass sanctions. The speaker shares their emotional experience at the Axicon conference after the investigation.
26:26

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Podcast summary created with Snipd AI

Quick takeaways

  • Sophisticated hackers utilized cryptocurrency mixers to launder $600 million stolen from Axie Infinity.
  • Collaboration between private investigators, law enforcement, and centralized exchanges played a crucial role in freezing accounts associated with the stolen funds and preventing further cybercriminal activity.

Deep dives

The Rise of Axie Infinity and the Heist

Axie Infinity, a popular blockchain game that resembled blockchain Pokemon, experienced a massive heist where $600 million worth of cryptocurrency was stolen. Aaron Plant, a private detective specializing in tracking stolen cryptocurrency, was tasked with investigating the incident. The heist was orchestrated by sophisticated hackers who used mixers, digital services that scramble cryptocurrencies, to launder the stolen funds. Aaron, along with her team at Chainalysis, developed strategies to reverse the mixing process and trace the stolen money. They were successful in freezing millions of dollars worth of crypto, preventing it from falling into the hands of the hackers. The investigation revealed evidence linking the heist to North Korea, raising concerns about national security due to the country's use of stolen crypto funds to finance their nuclear program.

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