Crypto Hacker Steals $20.7M from US Govt Wallet, Returns $6.1M

A crypto hacker returned $6.1 million to a U.S. government crypto wallet after initially stealing $20.7 million in digital assets.

Analytics platform Onchain Lens reported that a U.S. government digital wallet was compromised in a high-profile hacking incident just a few hours ago, resulting in the theft of $20.7 million in cryptocurrency. The hacker quickly transferred funds across several wallets, using decentralized exchanges to convert stolen assets and route a portion of the funds to international crypto exchange platforms.

The stolen assets included $13.7 million in aUSDC, $5.44 million in USDC, $1.12 million in USDT, and 178 ETH valued at approximately $447,000. Within hours, the hacker converted $7.06 million of these assets—primarily USDC, USDT, and a portion of aUSDC—into 2,764 ETH, trading at an average price of $2,555 per ETH.

Courtesy: Arkham Intelligence

Surge in Crypto Thefts Highlights Rising Security Concerns in DeFi

The hacker’s transactions included notable movements to Binance, one of the world’s largest cryptocurrency exchanges. Of the converted ETH, 195.4 ETH, valued at roughly $493,000, was dispersed across ten separate Binance deposit addresses.

As of this writing, the crypto hacker retains approximately $6.93 million in various assets, including 13.17 million aUSDC and 2,747 ETH. These remaining funds are said to be spread across three wallet addresses, making ongoing tracing and recovery efforts complex. However, in an unusual turn of events, the hacker initiated the return of a substantial portion of the funds. U.S. government wallets have now so far received 13.19 million aUSDC and 2,408 ETH, totaling an estimated $6.1 million.

Crypto thefts have become common over the last few years. Chainalysis’ Crypto Crime Report noted that 2022 marked a record high for crypto theft, with $3.7 billion stolen. In 2023, however, the total value of stolen funds dropped by approximately 54.3% to $1.7 billion. Despite this decrease in dollar amounts, the number of hacking incidents rose slightly, from 219 in 2022 to 231 in 2023.

Apart from this, DeFi hacking also surged dramatically in 2021 and 2022, with attackers seizing around $2.5 billion and $3.1 billion, respectively, from various protocols. Experts noted that they are seeing an alarming increase in both the frequency and impact of attacks across the DeFi ecosystem.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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