🌎 Bitcoin Whale Loses $238 Million in Suspected Crypto Theft

According to web3 investigator ZachXBT, a Bitcoin whale may have lost assets worth $238 million in crypto on August 19. The popular crypto sleuth highlighted a “suspicious transfer” from a wallet containing over 4064 Bitcoin, a substantial sum valued at nearly a quarter billion dollars.

ZachXBT mentioned via Telegram that the funds were distributed across several crypto platforms, including the cross-chain platform THORChain, the crypto exchange KuCoin, and the privacy protocol Railgun.

Per on-chain data, the possible victim could be a Genesis Trading bankruptcy claimant. Approximately two weeks ago, the wallet received 642.3 BTC, worth $37.7 million, from the Genesis creditor distribution. Two years earlier, another affiliated address was sent 2,173 Bitcoin, valued at over $127 million.

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

Last week, the “blockchain Sherlock Holmes” uncovered a North Korean syndicate posing as crypto IT staffers. The group stole over $1.3 million from a project’s treasury by leveraging shoddy web3 developer identities.

Crypto Theft Trends

Crypto theft continues despite a drop in illicit activity tracked by blockchain research firms. Chainalysis reported a 20% increase in crypto criminal transactions since the start of the year. However, in its mid-year report, Chainalysis also said bad actors were poised to steal over $3 billion in Bitcoin and crypto in 2024.

According to TRM Labs, threat actors siphoned more than $1.4 billion in cryptocurrencies and digital assets in the first half of 2024. Hackers stole $1.7 billion last year, as industry veterans urged vigilance and better technical practices from protocols.

Companies like Coinbase and a group of white hat safety veterans called SEAL 911 continue to combat the issue by leading web3 security initiatives.