ZachXBT reports on Monero rapid growth amid alleged funds laundering
$330M Bitcoin theft triggers Monero price spike as hackers launder funds.
A major crypto theft involving 3,520 Bitcoin (BTC), worth approximately $330.7 million, has sent shockwaves through the blockchain community.
Onchain investigator ZachXBT reported the suspicious transaction on April 28, noting that the stolen funds were quickly laundered through multiple exchanges and converted into Monero (XMR), sparking a sharp price rally for the privacy coin, reports Cointelegraph.
Key Takeaways
- Massive Bitcoin Theft: 3,520 BTC ($330.7M) transferred to suspicious address.
- Rapid Laundering: Funds routed through six exchanges, swapped into Monero.
- XMR Price Surge: Monero spiked by 50%, reaching $339 before settling at $289.
- No Ties to Lazarus Group: ZachXBT suggests independent hackers, not North Korea.
Stolen Bitcoin Floods Exchanges, Boosts XMR
The suspected theft was first flagged when BTC was moved to address bc1qcry…vz55g and rapidly dispersed through more than six instant exchanges. Within hours, the Bitcoin was converted into Monero (XMR), a cryptocurrency known for its privacy features.
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The laundering operation caused a 50% spike in Monero’s price, sending it to an intraday high of $339. Although XMR later corrected, it remains up 25% over the last 24 hours, trading at $289 at the time of writing, according to CoinMarketCap data.
XMR price chart. Source: CoinMarketCap
When asked whether North Korea’s notorious Lazarus Group was involved, ZachXBT dismissed the connection, stating it was “highly probable it’s not,” suggesting that independent threat actors carried out the attack.
Privacy Coins Still Pose Challenges Despite Mainstream Crypto Dominance
Chainalysis weighed in on the situation, noting that despite Monero’s surge, most criminal transactions still rely heavily on mainstream cryptocurrencies like Bitcoin, Ethereum, and stablecoins.
“While there are concerns of more criminals moving to privacy coins for anonymity, the vast majority of criminal activity still uses mainstream cryptocurrencies,” Chainalysis told Cointelegraph. They emphasized that mainstream assets provide cross-border functionality, instant settlement, and high liquidity, making them more attractive even for illicit actors.
Additionally, privacy coins like Monero face liquidity challenges, and their delisting from major exchanges further hampers criminals’ ability to cash out. Chainalysis also highlighted that blockchain transparency remains a key tool for law enforcement, enabling authorities to trace and recover illicit assets even in the face of privacy-preserving technologies.
Interestingly, a 2024 leaked Chainalysis video suggested that Monero transactions could still be traceable to some extent via “malicious nodes” operated by the firm, offering a potential avenue for investigating privacy coin transactions despite their design to obscure data.
Looking Ahead
The dramatic theft and laundering event underscore the persistent vulnerabilities in the crypto ecosystem. As privacy coins continue to offer a haven for laundering activities, tensions between user privacy and regulatory oversight are likely to intensify. Whether law enforcement can leverage advances in blockchain analytics to track and recover the stolen Bitcoin remains a critical question for the industry.
Recently we wrote that crypto investigator ZachXBT has cast doubt on the economic substance behind Zora’s surging popularity, arguing that its “viral” content coins lack meaningful financial traction.
