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ZachXBT Reports Likely $14.8M Exploit of Rain Exchange

Key Takeaways

  • ZachXBT reported a "likely exploit" at the Rain crypto exchange, resulting in suspicious outflows of $14.8 million on April 29;
  • Stolen cryptocurrencies were converted and transferred to two wallets, holding over $11.7 million in Bitcoin and Ethereum;
  • Rain assured customers of their fund's safety, claiming to work with law enforcement and enhancing security measures.
ZachXBT Reports Likely $14.8M Exploit of Rain Exchange

On-chain investigator ZachXBT reported on May 13 that the Rain crypto exchange had been "likely exploited" for $14.8 million.

He noticed that the crypto exchange's Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP wallets saw suspicious outflows on April 29.

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According to ZachXBT, the cryptocurrencies were quickly transferred to instant exchanges, converted to Bitcoin and Ethereum, and then moved to two wallet addresses within the networks.

The Bitcoin address involved, ending in prp2, contains nearly 103 BTC, which is worth about $6.3 million. The Ethereum address, ending in 6c28, currently holds around 1,881 ETH, valued at approximately $5.4 million.

After ZachXBT's announcement, the co-founder and chairman at Rain, AJ Nelson, went on X to address this situation, ensuring that all customer funds were safe and the crypto exchange was working with law enforcement worldwide to track down the funds and the people behind them.

Rain also addressed the exploit via a blog post, outlining the measures taken to resolve the issue:

As soon as we became aware of the incident, we isolated the issue and put additional controls to strengthen our security. Rain Group has covered any potential losses resulting from this incident, ensuring that our customers' interests remain protected.

This incident is a reminder of the vulnerabilities in the crypto industry and the need for platforms and users to adopt security measures and remain alert.

Crypto security concerns were also highlighted by another exploit that occurred earlier this month, when a trader lost $68 million in WBTC due to an address poisoning scam.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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