Blockchain investigator ZachXBT suspects a hack on the Rain cryptocurrency exchange.
In a recent blog post, the researcher shared his insights, suggesting that Rain was likely hacked for $14.8 million on April 29. Rain, serving customers in the Middle East, Turkey, and Pakistan, functions as a cryptocurrency exchange and custodian.
ZachXBT noted suspicious outflows from their Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ripple (XRP) wallets. He also pointed out two addresses where the stolen funds might be held, backing his assumptions.
However, ZachXBT highlighted that Rain has not yet issued any statements concerning the incident.
“At this point, Rain hasn’t addressed the incident.”
ZachXBT, blockchain investigator
Last month, decentralized cryptocurrency exchange FixedFloat fell victim to an exploit resulting in the withdrawal of approximately $2.8 million from its hot wallet.
The dubious account received additional funds via ETH, USDT, WET, DAI, and USDC. To circumvent asset freezes by issuers, stablecoins USDT and USDC were promptly converted into ETH through various decentralized exchanges.
Despite the recent security breach, the damage from cybercrime in April marked the lowest since 2021. According to CertiK, cryptocurrency projects incurred a total loss of $25.7 million last month.
This figure represents a 141% decrease compared to March, with 11 instances of compromised private keys being one of the primary causes of project hacks.
Summary Review: The Rain cryptocurrency exchange appears to have fallen victim to a significant hack, with an estimated loss of $14.8 million according to blockchain analyst ZachXBT. Suspicious transactions were detected from multiple wallets, indicating a targeted attack on April 29. Despite these findings, Rain has yet to address the incident officially. This incident adds to a string of recent cybersecurity breaches in the cryptocurrency space, including the exploitation of the FixedFloat exchange, which lost approximately $2.8 million in a similar attack. The use of decentralized exchanges to convert stolen assets underscores the challenges in tracing and recovering funds in such cases. However, amidst these challenges, there is a glimmer of hope as April saw a decrease in cybercrime-related losses compared to previous months. Despite this, the threat of compromised private keys remains a significant concern for cryptocurrency projects, highlighting the ongoing need for robust security measures within the industry.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
