A significant cryptocurrency theft has been reported, involving the loss of 27 million USDT (Tether). The incident was first brought to light by a tweet from ZachXBT, a well-known figure in the cryptocurrency community, known for his investigative work on crypto-related frauds and scams.
According to ZachXBT’s tweet, the theft occurred on November 12, 2023. The stolen USDT was rapidly converted into Ethereum (ETH) and then dispersed through various services, including FixedFloat and ChangeNow. Subsequently, the funds were bridged to Bitcoin via THORChain, a decentralized liquidity protocol.
An intriguing aspect of this case is the connection of the victim’s address to the Binance deployer. Binance, one of the world’s largest cryptocurrency exchanges, has been known for its robust security measures. The involvement of an address linked to Binance’s deployer raises questions about the security protocols and the potential vulnerabilities that could have been exploited in this theft.
The transaction ID provided by ZachXBT for the theft is 0x0f2183c8e415e61b4ad7774bf1097019eb2d5b85798a2a229070495131d60321. This transaction can be traced on the Ethereum blockchain, offering insights into the movement of the stolen funds.
The rapid conversion of the stolen USDT to ETH and the subsequent transfer to various services highlights the challenges in tracking and recovering stolen cryptocurrency funds. The use of decentralized exchanges and cross-chain bridges like THORChain further complicates the recovery process, as these platforms often do not have the same level of regulatory oversight or user identification requirements as centralized exchanges.
Recent months have seen a surge in significant crypto hacking incidents, highlighting the persistent vulnerabilities in the digital asset sector. One case was the LastPass hack in October, where hackers siphoned $4.4 million from over 25 users, underscoring the risks associated with digital security and password management. This event was closely followed by a major breach at the Poloniex exchange, resulting in a staggering loss of over $100 million in crypto assets, believed to be due to a private key compromise. In a related development, the digital asset lender Hodlnaut faced liquidation amid the crypto winter, affecting numerous users and creditors. These incidents collectively underscore the critical need for enhanced security measures and vigilance in the cryptocurrency industry, as investors and platforms alike navigate the complexities of digital asset security.
Image source: Shutterstock
>