Possible $14.1M Crypto Exploit Hits Bahrain-Based Exchange Rain
Summary:
Rain, a Bahrain-based cryptocurrency exchange, may have been exploited on April 29. According to a report by blockchain investigator ZachXBT, about $14.1 million worth of cryptocurrencies were suspiciously transferred to a new wallet. The funds were swiftly redirected and swapped for Bitcoin and Ether before being deposited into two separate addresses. These events raise ongoing concerns about the vulnerability of crypto platforms to hacking and exploitation activities.
The digital currency platform Rain was possibly subjected to an exploitation attack on April 29, with cryptocurrencies amounting to $14.1 million suspiciously moved to a new digital wallet, states an assessment by blockchain investigator ZachXBT published on May 13. The analysis was conducted two weeks after the potentially questionable transaction took place. Rain operates from Bahrain and mainly services clients from the Middle East and Southwest Asia. As per The National, a local news outlet, Rain's trading volume has surpassed $1 billion from the time of its establishment.
According to a post on ZachXBT’s official Telegram channel, those funds were swiftly redirected to instant exchange platforms and swapped for Bitcoin and Ether, and then placed in two separate receiving addresses in the Bitcoin and Ethereum networks. The Bitcoin wallet, that concludes with prp2, presently contains 137.9 Bitcoin, calculated to be around $8.6 million based on current rates. The Ethereum wallet, ending with 6c28, currently holds nearly 1,881 Ethereum, valued at about $5.5 million as per recent exchange rates.
As per information from Arkham Intelligence, the Ethereum recipient address got its funds from another wallet, ending in d609. This wallet obtained funds from various Bitgo multisignature wallets. However, Arkham stopped short from expressly categorizing these wallets as belonging to Rain.
On the day in question, these Bitgo accounts made 26 individual transactions to the wallet ending in d609, dispatching Ether along with diverse digital tokens. The transferred assets included over 590 Ether (valued around $1.7 million on current pricing), around 20 billion Shiba Inu ($481,000), 12,500 Chainlink ($169,000), $240,000 in Tether (USDT), and $500,000 in USD Coin (USDC).
Immediately following receipt, these tokens were traded for Ether on the Uniswap platform. As these trade operations were being processed, the account kept receiving more tokens inclusive of Aave (AAVE), Yearn Finance (YFI), MakerDAO (MKR) and more from the Bitgo wallets. The account also accepted funds from a Binance hot wallet.
Rain was approached for comments by Cointelegraph, however, no response was received at the time of releasing this report.
Crypto platforms continue to be vulnerable to hacking and exploitation activities. A recent case involved Gnus.AI that reported the loss of over $1.27 million due to a compromised Discord server and leaked private key on May 6. Kaspersky, a cybersecurity giant, indicated on May 13 that a North Korean hacking group called Kimsuky launched a new “Durian” malware distinctly targeting crypto businesses.
Related: Transferred funds from a Kronos Research hacking incident found in Tornado Cash
Published At
5/13/2024 7:48:04 PM
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