Major Bitcoin Theft Reaches $330 Million
In a shocking development, an elderly American has fallen victim to a staggering Bitcoin theft amounting to $330 million, marking it as one of the most significant cryptocurrency hacks ever recorded, now ranking as the fifth-largest in history. The breach, which occurred on April 28, 2025, was revealed by onchain analyst ZachXBT through a post on X (formerly Twitter) that detailed the sophisticated social engineering methods employed by the hacker to compromise the victim’s digital wallet.
The Attack and Its Consequences
The attack saw the unauthorized transfer of 3,520 Bitcoin, equating to approximately $330.7 million. Remarkably, the victim had amassed a significant Bitcoin fortune, holding over 3,000 BTC since 2017, yet had avoided making any large transactions until this incident. As soon as the funds were removed from the wallet, the hacker promptly initiated a laundering process, leveraging a technique known as “peel chains.” This method involves splitting larger sums into numerous smaller amounts to make tracing more challenging.
Laundering Process of the Stolen Bitcoins
Yehor Rudytsia, a researcher with Hacken, shed light on the laundering process, indicating that $330 million in Bitcoin was rapidly disseminated through a series of transactions and effectively laundered across more than 40 wallets, involving over 300 different wallets and 20 exchanges. Within a short span, substantial portions of the illicit Bitcoin were funneled into instant exchanges and mixed with negligible amounts, aggravating efforts to trace the stolen funds.
The laundering activity on the blockchain has been heavily scrutinized, with Hacken discovering that around $284 million worth of BTC had been funneled through these methods, but ultimately reduced to about $60 million due to ongoing redistributions across dubious exchanges. There is speculation that the hacker had already established accounts on numerous exchanges before the incident, revealing a highly calculated and premeditated operation.
Conversion to Monero
In a noteworthy aspect of the laundering, many of the stolen Bitcoins were converted into Monero, a cryptocurrency recognized for its robust privacy features, causing Monero’s price to surge by 50%, briefly reaching $339. This transition into Monero significantly hinders any potential tracing efforts due to its confidentiality-enhancing technology.
Investigative Insights and Security Concerns
While investigators have notified exchanges about the potential for fund freezes, the legal processes tied to such actions can often be slow, as highlighted by Rudytsia. Interestingly, ZachXBT has ruled out the involvement of North Korea’s notorious Lazarus Group, suggesting that the culprits behind this heist might be independent hackers showcasing a unique level of sophistication and organization.
This incident underscores ongoing concerns within the cryptocurrency sector about security, as just in the first quarter of 2025 alone, hackers accrued over $1.6 billion from attacks on exchanges and smart contracts, according to research firm PeckShield, emphasizing the pressing need for improved security measures among crypto holders.
