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Rain Cryptocurrency Exchange Exploit
Rain cryptocurrency exchange encountered a potential exploit on April 29, resulting in the transfer of approximately $14.1 million worth of various cryptocurrencies to a new wallet under suspicious circumstances. The exploit involved outflows from Rain’s Bitcoin, Ethereum, Solana, and XRP wallets, which were then exchanged for Bitcoin and Ethereum and transferred to different addresses on the respective networks.
Details of the Exploit
- Ethereum address “6c28” now holds around 1,881 ETH valued at $5.5 million.
- Bitcoin address “prp2” holds 137.9 BTC valued at $8.6 million.
Arkham Intelligence data suggests that the Ethereum destination address received funds from another address and subsequently from BitGo multi-signature wallets, although not explicitly linked to Rain.
Allegations and Investigations
While the wallets involved in the exploit have not been confirmed to belong to Rain, they were associated with significant transfers of various cryptocurrencies, including ETH, Shiba Inu, Chainlink, Tether, and USD Coin, which were swiftly converted on Uniswap.
Rain Exchange Background
Rain is a centralized crypto exchange based in Bahrain, catering primarily to customers in Southwest Asia and the Middle East. The exchange has facilitated trading volumes exceeding $1 billion since its inception. Notably, Rain’s “pro” version has been experiencing intermittent downtime since May 5, as per the exchange’s website.
In 2023, Rain received approval from Abu Dhabi’s financial regulator to operate as a virtual asset brokerage and custody service provider.
Lazarus Group Allegations by ZachXBT
ZachXBT has raised allegations against North Korea’s Lazarus Group, accusing them of laundering $200 million worth of cryptocurrency into fiat currency over a four-year period. The analysis suggests that a portion of the stolen crypto was laundered through specific platforms using distinct usernames.
Furthermore, ZachXBT reported a phishing attack targeting a holder of Bored Ape Yacht Club tokens, resulting in the loss of three rare NFTs. The crypto industry faced significant losses due to hacks and exploits in the previous year, with an additional $333 million stolen in the first quarter of this year.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
