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.
