Famous 'Blockchain Bandit' Awakens, Suddenly Moves $100M in ETH

The notorious "Blockchain Bandit" has once again surfaced, making headlines as the year draws to a close. This elusive hacker consolidated a massive 51,000 ETH , worth approximately $172 million, into a single multisig wallet on December 30. The move signals a potential shift towards laundering operations, with industry experts watching closely.

Renowned blockchain investigator ZachXBT unveiled this activity, tracing it back to 10 dormant wallets.

These wallets had been inactive since January 2023. In tandem with the ETH transfer, an additional 470 BTC were moved. The blockchain community is on high alert.

Gaining notoriety between 2016 and 2018, the Blockchain Bandit exploited cryptographic vulnerabilities through a technique dubbed "Ethercombing." By systematically guessing weak private keys, often due to flawed random algorithms or misconfigured wallets, the Bandit stole over 45,000 ETH across 49,060 transactions. This method, while deemed improbable due to the vast numerical range of private keys, capitalized on predictable flaws such as non-random key generation.

Cybersecurity analysts speculate that state-sponsored groups, possibly from North Korea, could be orchestrating these attacks. These groups have a known history of targeting cryptocurrency platforms to fund illicit activities. The latest transfer, marked by multi-signature wallets, suggests preparations for laundering through mixers or decentralized exchanges.

Resurgence of the Bandit comes at a time when crypto cybercrime is on the rise. Hackers are devising new strategies to dupe unsuspecting victims. In December, cybercriminals were reported exploiting fake Zoom meeting links, targeting crypto users and collecting sensitive credentials. The malware, linked to Russian operatives, has already converted over $1 million to ETH.

Another scam involved sharing seed phrases of counterfeit crypto wallets, luring opportunistic thieves. When accessed, these wallets demand TRX for transaction fees, funneling funds to scammers instead. Kaspersky warns this scheme masquerades as a rookie blunder, tricking culprits into becoming victims.

The blockchain and cryptocurrency sectors brace for more turbulence as these cybersecurity threats continue to evolve with unprecedented ingenuity.