Bitcoin Whale Loses $238 Million in Major Crypto Hack: Report
Web3 Investigator ZachXBT Uncovers Suspicious $238M Bitcoin Transfer Linked to Genesis Trading Bankruptcy Claimant Amid Rising Crypto Thefts.
Key Takeaways:
- Web3 investigator ZachXBT reported a suspicious transfer of 4,064 Bitcoin, worth approximately $238 million.
- The victim's identity is speculated to be that of a Genesis Trading bankruptcy claimant.
- Crypto theft is rising despite an overall drop in illicit activity tracked by blockchain research firms.
Popular web3 investigator ZachXBT has uncovered what could be one of the largest crypto hacks of 2024. On August 19, a Bitcoin whale potentially lost Bitcoin worth a staggering $238 million.
ZachXBT Raises Alarm Bells of Suspicious Bitcoin Transfer
ZachXBT highlighted a “suspicious transfer” from a wallet containing over 4,064 Bitcoin, valued at about $238 million.
According to the crypto sleuth, the funds were distributed across several crypto platforms, including THORChain, KuCoin, and privacy protocol Railgun.
The victim's identity remains unknown, but available blockchain data hints that they might be a Genesis Trading bankruptcy claimant.
The wallet is believed to have received 642.3 BTC worth $37.7 million from the Genesis creditor distribution about two weeks ago. This incident adds to a growing list of high-profile cryptocurrency thefts in 2024.
Despite an overall drop in illicit activity tracked by blockchain research firms, crypto theft has seen a significant uptick this year.
Chainalysis, a blockchain research startup, reported a 19.6% increase in crypto criminal transactions since the beginning of 2024.
The firm's mid-year report suggests that bad actors are on track to steal over $3 billion in Bitcoin and other cryptocurrencies by the end of the year.
Rising Tide of Crypto Theft in 2024
The cumulative value of crypto stolen through July has already surpassed $1.58 billion, marking an 84% increase compared to the same period in 2023.
This dramatic resurgence comes after cryptocurrency hacking activity experienced a 50% drop in 2023.
TRM Labs, another blockchain intelligence firm, corroborates these findings, reporting that threat actors siphoned more than $1.4 billion in cryptocurrencies and digital assets in the first half of 2024 alone.
The recent $238M crypto hack is the latest in a series of significant cryptocurrency breaches that have rocked the sector. In July, Indian Bitcoin exchange WazirX suffered a security breach resulting in the loss of approximately $235 million in multiple cryptocurrencies.
In May, the notorious Lazarus Group allegedly perpetrated a $305 million hack on DMM Bitcoin. However, reports suggest that over $35 million of these stolen funds were laundered through an online marketplace in Cambodia reportedly tied to the powerful Hun family.
More recently, blockchain investigators exposed a North Korean syndicate posing as crypto IT staffers, who stole over $1.3 million from a project's treasury by leveraging fake Web3 developer identities.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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