In a major cryptocurrency security breach reported about 11 hours ago, hackers successfully compromised a Bitcoin wallet, stealing approximately 3,520 BTC-valued at around $330.7 million. The stolen funds were swiftly funneled through over six instant cryptocurrency exchanges and converted into Monero (XMR), a privacy-focused coin known for its untraceable transactions. This rapid laundering operation caused Monero’s price to surge by roughly 50% within a very short span, catching the market by surprise.
Blockchain investigator ZachXBT highlighted that the stolen Bitcoin was fragmented and moved quickly to obscure its origin, utilizing exchanges with active Monero markets such as KuCoin and Kraken. The attacker paid unusually high transaction fees to further conceal the trail. The sudden influx of large BTC amounts into Monero’s limited liquidity pools triggered a sharp price rally, pushing XMR to spike above $300 before liquidity constraints caused a partial reversal.
This incident underscores the growing use of Monero in laundering large-scale crypto thefts due to its strong privacy features, which complicate tracking efforts by authorities and analysts. While some speculate that independent hackers carried out this theft, the operation’s sophistication and laundering tactics highlight ongoing challenges in regulating privacy coins and securing high-value crypto assets.
Market observers are now closely monitoring XMR trading volumes and derivative positions, which have seen significant volatility following the event. The episode also reignites debates about balancing privacy and regulatory compliance in the cryptocurrency ecosystem.
