The notorious hacker known as the “Blockchain Bandit” has reappeared, consolidating 51,000 Ether (ETH) worth $172 million into a single wallet after two years of dormancy.
According to blockchain investigator ZachXBT, the funds were transferred in batches of 5,000 ETH from 10 separate wallets to a multi-signature address labeled “0xC45…1D542” on December 30. The transfers occurred between 8:54 pm and 9:18 pm UTC.
The stolen Ether had remained untouched since January 2023, when the hacker also moved 470 Bitcoin (BTC). Initially, the Blockchain Bandit amassed nearly 45,000 ETH by exploiting weak private keys, a technique dubbed “Ethercombing.”
This method involved systematically guessing private keys using faulty code and random number generators. Reports from 2019 by Independent Security Evaluators revealed that the hacker uncovered 732 private keys linked to 49,060 transactions.
Crypto security experts warn that vulnerabilities in private key generation can lead to severe breaches. Hackers exploiting flawed random number generators can replicate private keys, gaining unauthorized access to wallets. This incident highlights the importance of secure key management and robust encryption practices.
The Blockchain Bandit’s reemergence occurs amidst a rising wave of crypto thefts. Onchain security firm Cyvers reports that hackers stole over $2.3 billion across 165 major incidents in 2024, a 40% increase from 2023. Most breaches targeted centralized exchanges and custodian platforms, accounting for $1.9 billion in losses.
As the crypto world grapples with these challenges, experts urge users and platforms to enhance security measures, adopt cold wallets, and regularly audit systems to prevent such sophisticated attacks.
Also Read: China Denies Hacking Allegations in US Treasury Breach
