Binance Freezes $7M in Stolen Cryptocurrency
- $7 million of stolen crypto frozen by Binance with investigators’ aid.
- Attempting recovery from a major crypto theft incident.
- Market impact from converted coins and security concerns.
On May 2, 2025, ZachXBT and Binance collaborated to freeze $7 million of stolen cryptocurrency from an OG Bitcoiner.
The freezing of funds highlights ongoing cryptocurrency security challenges, impacting Bitcoin’s market stability and exposing vulnerabilities in digital asset protection.
Investigation by ZachXBT Uncovers Suspicious Transfers
ZachXBT, an on-chain investigator, uncovered the suspicious transfers on April 28, 2025. The collaboration between ZachXBT and Binance security helped in tracking and freezing the stolen cryptocurrency.
Binance Security Team froze part of the funds stolen from an elderly US citizen. This disrupted the theft operations and involved several on-chain investigators working closely together.
$7 Million Freeze Triggers Positive Market Reaction
The freezing of $7 million resulted in a positive market response, stabilizing crypto prices momentarily. However, the conversion of stolen Bitcoin to Monero caused a 50% XMR price surge.
ZachXBT’s identification of suspects brings attention to vulnerabilities. Authorities and exchanges are under pressure to implement security measures and prevent such high-value thefts.
Comparisons with August 2024 Genesis Theft
Similar to the Genesis creditor theft of August 2024, this case underlines the challenges in recovering stolen cryptocurrencies and freezing funds through exchanges.
Expert Hakan Unal suggests tracing funds becomes impossible after conversion to privacy coins like Monero, complicating recovery efforts for stolen assets.
“Once funds are swapped into Monero, tracing becomes virtually impossible due to its privacy-preserving architecture.” — Hakan Unal, Senior Security Operations Lead, Cyvers Alerts
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