Expert suggests $238 million hack of unknown lender Genesis Trading

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The well-known on-chain detective ZachXBT drew attention to a suspicious transfer of 4064 BTC ($238 million). The potential victim's funds have been sent to ThorChain, eXch, Kucoin, ChangeNow, Railgun, and Avalanche Bridge.

Seven hours ago a suspicious transfer was made from a potential victim for 4064 BTC ($238M)

Transaction hash
4b277ba298830ea538086114803b9487558bb093b5083e383e94db687fbe9090

Funds were quickly transferred to ThorChain, eXch, Kucoin, ChangeNow, Railgun, Avalanche Bridge.
— ZachXBT (@zachxbt) August 19, 2024

The Railgun team indirectly confirmed the expert's fears, answering that the protocol did not accept the coins due to the Private Proofs of Innocence ("purity" of assets) check.

Whilst RAILGUN is permissionless and anyone can send tokens in, any tokens that fail to generate a Private POI proof CANNOT enter the privacy set.

In this case, the tokens @zachxbt mentioned were unshielded back to the original address and gained no privacy.
— RAILGUN — Private & Anonymous DeFi (@RAILGUN_Project) August 19, 2024

"In this case, the tokens mentioned by ZachXBT were not shielded and returned to the original address, without receiving any privacy," the developers wrote.

Journalist Colin Wu noted that one of the wallets of a potential victim received 642.4 BTC ($37.73 million) from the liquidators of Genesis Trading two weeks ago. At another address, 2173 BTC ($127 million) from the bankruptcy platform arrived about two years earlier.

One of the victim addresses: bc1qlx… k6cjkf's 642.376 BTC (worth about $37.73 million) was transferred from Genesis Trading: Bankruptcy Distributions two weeks ago; another victim address: bc1q42… g4yckd's 2.173k BTC (worth about $127 million) came from Genesis Trading two…
— Wu Blockchain (@WuBlockchain) August 19, 2024

ZachXBT responded negatively to a question about the possible involvement of the Lazarus Group in the incident "again".

"This time, I think not (the behavior is somewhat different)," he explained.

The expert also questioned the pressure of assets on the price of digital gold, since only a small part of the amount has so far been converted from BTC.

"This space is full of scams. And we are surprised at the lack of a bull run," one of the users wrote under Wu's tweet.
 
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