Key Points
The hacker collective known as “Blockchain Bandit” has reemerged after a period of inactivity.
They have made headlines by consolidating 51,000 Ethereum (ETH) into a single wallet.
This move amounted to a staggering $172.2 million.
Details of the Heist
The funds transfer took place on Dec. 30 between 8:54 pm and 9:18 pm UTC.
Ten inactive wallet addresses were used to funnel the funds into a multi-signature wallet.
Each transaction involved 5,000 ETH.
On Jan. 21, 2023, the same group transferred 470 Bitcoin (BTC) along with Ethereum (ETH).
The “Blockchain Bandit” is known for employing a form of cybercrime known as “Ethercombing”.
This technique involves using brute force to exploit weaknesses in poorly written code and randomness generators.
According to crypto security expert Adrian Bednarek, the hacker managed to crack 732 private keys, corresponding to 49,060 transactions.
The group began its activities in 2016, with the majority of thefts occurring in 2018.
Within eight months, they had amassed 45,000 ETH through programmatic theft.
This made them a significant threat in the crypto world.
The return of the Blockchain Bandit underscores the vulnerabilities inherent in the blockchain ecosystem.
A report from onchain security firm Cyvers revealed that $2.3 billion was stolen in 165 security incidents in 2024.
This represented a 40% increase from the previous year.
81% of the total lost funds, or $1.9 billion, were due to access control breaches on centralized exchanges and custodial platforms.
These breaches primarily targeted pig butchering scams.
