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This Genesis Creditor Lost $243M in Sophisticated Bitcoin Theft: ZachXBT

Over $9 million from the stolen funds have been frozen and more than $500,000 has already been returned to the victim at press time.

hacker security breach

Blockchain sleuth ZachXBT recently revealed how a Genesis creditor lost a whopping $243 million worth of Bitcoin in a highly sophisticated social engineering attack.

The perpetrators, identified as Greavys (Malone Iam), Wiz (Veer Chetal), and Box (Jeandiel Serrano), orchestrated a multi-step attack that compromised the victim’s personal and exchange accounts.

Details of the Theft

ZachXBT stated that the attackers initiated contact with the victim by impersonating Google Support through a spoofed phone number which led to them successfully gaining access to the victim’s accounts.

Following this, they posed as Gemini support representatives, convincing the victim that their exchange account was compromised. They manipulated the individual into resetting two-factor authentication and transferring funds to a wallet under their control.

Furthermore, the perpetrators persuaded the victim to use AnyDesk, a remote desktop application. This move allowed them to access the victim’s screen and extract private keys from Bitcoin Core, leading to the theft of a substantial amount of Bitcoin.

ZachXBT also shared a private video showing the attackers reacting in real-time upon receiving $238 million.

An initial blockchain tracing revealed that the stolen funds were quickly divided among the parties involved. They quickly dispersed the funds across more than 15 exchanges, rapidly converting between Bitcoin, Litecoin, Ethereum, and Monero to obfuscate the trail.

One of the individuals, Wiz (Veer Chetal), who reportedly received a significant portion of the stolen assets inadvertently revealed his full name during a screen-sharing session amid the theft.

Further investigation led to the arrest of the other two perpetrators in Miami and LA yesterday by law enforcement.

According to ZachXBT, over $9 million from the stolen funds have been frozen with the assistance of Cryptoforensic Investigators, zeroShadow, and the Binance Security team. Additionally, more than $500,000 has been returned to the victim at press time.

Minimizing the Risks of Crypto Thefts

The sophisticated nature of this attack highlights the evolving tactics utilised by cybercriminals in the crypto space. As shown, social engineering remains an effective approach for exploiting human vulnerabilities rather than technical flaws.

The incident emphasises the need for enhanced security measures and user vigilance, even among experienced participants in the crypto industry.

Additionally, the collaborative efforts of blockchain analysts and law enforcement demonstrate the growing effectiveness of tracing illicit activities on the blockchain.

Faith

Faith is a dedicated content writer who is focused on expanding her interest and knowledge about cryptocurrencies and blockchain technology. In her free time, she enjoys listening to music, reading, and traveling.