Rain exchange, a Bahrain-based crypto exchange, is suspected to have suffered a security breach on April 29th, according to blockchain investigator ZachXBT. Almost $14.8million from various cryptocurrencies were allegedly transferred out.
On-chain data reported that the transferred funds were then moved up to other exchanges and later on converted into Bitcoin and Ethereum before being deposited to separate addresses on both networks.
These addresses currently hold millions worth of crypto. The Ethereum address holds around $1,88 ETH while the Bitcoin address holds around 137.9 BTC.
Although the origin of the transferred funds is not known, data from Arkham Intelligence indicates that they came from Bitgo multisignature wallets, which were probably linked to Rain. These wallets were involved in the circulation of various cryptocurrencies which had a value of millions before being converted to ETH.
The case puts into question Rain’s security protocols. Although the exchange has not yet said anything about the situation, more investigation is still going on to find out the cause of these suspicious transactions.
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