Crypto Exchange Rain Reportedly Exploited for $15M But Fails to Disclose

ZachXBT alerted on Monday that crypto exchange Rain has been suspected of being exploited. According to ZachXBT, approximately $15 million flew out of the platform last month.

Rain Reportedly Exploited 

According to the on-chain sleuth, the incident occurred on April 29. On-chain data revealed that the fund outflow occurred on multiple wallets, including Bitcoin (BTC), Ether (ETH), SOL, and XRP.

The data also showed these crypto assets were quickly transferred to instant exchanges and swapped for BTC and ETH. The attackers’ wallets currently carry 137.9 BTC and 1881 ETH.

“It appears the crypto exchange Rain was likely exploited for $14.8M on April 29, 2024 after their BTC, ETH, SOL, and XRP wallets saw suspicious outflows. Funds were quickly transferred to instant exchanges and swapped for BTC and ETH,” ZachXBT said on Telegram.

Lack of Communication 

As of press time, Rain has yet to comment on any of its social media platforms, leaving users in limbo. Moreover, Rain’s advanced trading platform has been intermittently down since May 5. The exchange’s team last posted on X (Twitter) four days ago—on May 8.

Backed by Paradigm and Coinbase, Rain is one of the biggest crypto exchanges in the Middle East. The exchange serves people, particularly in Bahrain and Turkey. Its platform offers around 70 cryptocurrencies for users to buy, sell, and swap.

Its website states: “We manage your digital assets using Rain’s proprietary offline Cold Storage system, meaning your funds are protected.”

As of now, it is not entirely clear what really occurred on how this exploit was carried out. The only step users are advised to take now is to visit Rain’s website and social media platforms for possible updates.

Exploits have been known to be one of the prevailing cyber security threats in the crypto sector over the years. According to a report by blockchain security firm  Immunefi, around $336 million was stolen from the industry during the first quarter (Q1) of this year.