On May 2, 2025, ZachXBT and Binance collaborated to freeze 7 million dollars of cryptocurrency stolen from an OG Bitcoiner.
The freezing of funds highlights ongoing challenges regarding cryptocurrency security, impacting the stability of the Bitcoin market and exposing vulnerabilities in the protection of digital assets.
ZachXBT's investigation uncovered suspicious money transfer transactions
ZachXBT, an on-chain investigator, uncovered suspicious money transfer transactions on April 28, 2025. The collaboration between ZachXBT and Binance's security department helped trace and freeze the stolen cryptocurrency.
The Binance security team froze a portion of the funds stolen from an elderly U.S. citizen. This disrupted the theft operation and involved several on-chain investigators working closely together.
Freezing 7 million dollars caused a positive market reaction
The freezing of 7 million dollars created a positive response in the market, stabilizing cryptocurrency prices momentarily. However, the conversion of stolen Bitcoin to Monero caused the price of XMR to surge by 50%.
ZachXBT identifying the suspect draws attention to vulnerabilities. Authorities and exchanges are under pressure to implement security measures and prevent such high-value thefts.
Comparison with the Genesis Theft in August 2024
Similar to the Genesis theft in August 2024, this incident highlights the challenges of recovering stolen cryptocurrency and freezing funds through exchanges.
Expert Hakan Unal believes that tracing the source of funds will become nearly impossible after converting to privacy coins like Monero, complicating efforts to recover stolen assets.
"When funds are converted to Monero, tracking becomes nearly impossible due to its privacy-preserving structure." — Hakan Unal, Senior Security Operations Team Lead, Cyvers Alerts