Hacked Bitcoin whale may have lost $238m: ZachXBT

According to Web3 researcher ZachXBT, a Bitcoin whale may have lost $238 million worth of cryptocurrencies on August 19.

The popular crypto sleuth highlighted a “suspicious transfer” from a wallet containing over 4064 Bitcoins (BTC), worth a few million short of a quarter of a billion dollars.

ZachXBT said in a statement via Telegram that the funds were distributed across various cryptocurrency platforms, including cross-chain platform THORChain, crypto exchange KuCoin, and privacy protocol Railgun.

According to on-chain data, the potential victim could be Genesis Trading bankruptcy petitioner. About two weeks ago, the wallet received 642.3 BTC worth $37.7 million from a Genesis creditor distribution. Two years ago, 2,173 Bitcoin worth over $127 million was sent to another connected address.

It’s unclear how the potential bad actor compromised the victim’s security and likely stole the funds. ZachXBT did not specify how the transfer was initiated or who made the move.

Last week, the ‘blockchain Sherlock Holmes’ exposed a North Korean syndicate posing as crypto IT personnel. The group stole more than $1.3 million from a project’s treasury using sleazy web3 developer identities.

Illegal Bitcoin and cryptocurrencies down 20% since January

Despite a decline in illicit activity tracked by blockchain research startup Chainalysis, crypto theft continues. The firm reported a 20% increase in crypto crime transactions since the beginning of the year. However, Chainalysis said in its mid-year report that malicious actors are poised to steal more than $3 billion worth of Bitcoin and crypto by 2024.

According to TRM Labs, threat actors have embezzled more than $1.4 billion in cryptocurrencies and digital assets in the first half of 2024. While industry veterans are calling for better technical practices and caution in protocols, hackers stole $1.7 billion last year.

Companies like Coinbase and a group of white-hat security experts called SEAL 911 continue to combat this problem by spearheading web3 security initiatives.