Key Takeaways:
- Bahrain based Crypto exchange Rain suffered a $14.8 million exploit.
- The stolen funds were split into wallets holding 137.9 BTC and 1,881 ETH, which have remained dormant since April 29
Rain, a cryptocurrency exchange based in Bahrain, recently encountered a significant security breach, resulting in the loss of approximately $14.1 million worth of various cryptocurrencies.
The incident, which occurred on April 29, 2024, involved the unauthorized transfer of funds to a new wallet under suspicious circumstances.
Blockchain expert ZachXBT reported that the exchange lost $14.8 million, with the stolen funds divided into wallets containing 137.9 BTC and 1,881 ETH. These wallets have remained untouched since the attack, raising concerns about the security of Rain’s platform.
According to ZachXBT, the stolen funds were swiftly moved to instant exchanges and converted into BTC and ETH before being deposited into separate addresses on both networks.
On-chain data as per Arkham intelligence suggests that the transferred funds originated from Bitgo multisignature wallets, potentially linked to Rain, although this has not been explicitly confirmed.
((source: Arkham Intelligence))
Rain moved quickly to address the issue, implementing additional security measures to protect customer funds. The exchange assured users that necessary steps had been taken to strengthen security and prevent future breaches.
‘’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. All customer and operational activity including crypto buy, sell, send, receive, along with fiat deposit, and withdrawals, remain operational and uninterrupted across all our platforms.’’
Despite Rain’s efforts to mitigate the situation, the incident underscores broader security challenges within the crypto industry. Last year alone, investors lost $2 billion to similar hacks and exploits, with an additional $333 million stolen in the first quarter of this year.
This highlights the importance of robust security measures and vigilance in safeguarding digital assets.
Rain, which secured permission to operate as a virtual asset brokerage and custody service provider in the United Arab Emirates, faces ongoing scrutiny as it works to restore confidence among its users. The incident serves as a stark reminder of the risks associated with cryptocurrency exchanges and the need for continuous improvement in security protocols across the industry.
