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Crypto Exchange Rain Suffers $14.8 Million Loss; A Real Sophisticated Hack Indeed

The exchange “Rain” which is a prominent cryptocurrency exchange based in Bahrain, was the victim of a devastating hack on April 29, 2024, and lost $14.8 million dollars of BTC, ETH, SOL and XRP worth of crypto. 

The breach was first reported by the blockchain expert ZachXBT, who said that Rain’s wallets that contained BTC, ETH, SOL and XRP were going through suspicious outflows, thus a huge chance of exploitation of the exchange was possible. 

The hacker groups quickly transferred the stolen money to the exchanges which allowed them to convert them to BTC or ETH to confuse their trail. 

Tracking the stolen funds

The investigation of the sources of the money trail revealed that the Ethereum among the stolen funds was sent to a wallet with the address suffix “d609”. This wallet received many transactions from Bitgo multi-signature wallets associated with Rain. 

On the day of the breach the wallets executed 26 transactions and therefore, they transferred ETH and various tokens totalling over 590 ETH, 20 billion Shiba Inu, 12,500 Chainlink, $240,000 in Tether and $500,000 in USD Coin. Unarguably, all these assets were quickly exchanged for ETH on the decentralized exchange platform Uniswap. 

The complexity of the hack

Arkham Intelligence, a blockchain analytics firm, noticed that the “d609” wallet kept on receiving and saving different tokens such as Aave, Yearn Finance, and MakerDAO, which were soon converted to ETH. 

This complex system of transactions shows the aura of sophistication that these hackers use to hide their activities and to prevent others from knowing what they are up to. 

Response by the team

The Rain administration immediately reacted to the breach by saying that what needed to be done to protect the customer’s money had been fixed. The tweet which they released after ZachXBT’s revelation stressed that the incident was detected and the necessary actions were taken immediately to isolate and resolve the security breach, including the introduction of better security controls. 

Also Check Out: Crypto Hack Weekly Report: Are Your Investments Safe?

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