Fenbushi Capital Co-Founder Bo Shen Launches Bounty to Recover $42M Crypto Theft From 2022

Fenbushi Capital Co-Founder Offers up to 20% of $42M to Recover Stolen Crypto

Shen disclosed the theft publically connected Nov. 23, 2022, astir 2 weeks aft the breach occurred successful the aboriginal greeting hours of Nov. 10, 2022. The compromised wallet, ending successful the digits 894, held the bulk of his idiosyncratic integer assets. Fenbushi Capital, the Shanghai-based blockchain task steadfast Shen co-founded, was not affected.

The stolen assets included astir $38.2 cardinal successful USDC, 1,607 ETH, astir 720,000 USDT, and 4.13 BTC, on with smaller positions successful tokens including UNI, REP, and LQTY. Blockchain information firms Slowmist and Beosin traced the basal origin to a compromised mnemonic effect phrase, which gave the attacker nonstop power implicit the wallet.

At the time, the theft took spot against the backdrop of the FTX collapse, which had rattled crypto markets and overwhelmed the attraction of on-chain investigators. Shen reported the incidental to instrumentality enforcement, including the FBI, and engaged ineligible counsel. Progress stalled.

“A full of 42M worthy of crypto assets, including 38M successful USDC were stolen from my idiosyncratic wallet ending successful 894 successful the aboriginal greeting of November 10 EST,” Shen wrote successful his archetypal November 2022 statement.

He added:

“The stolen assets are idiosyncratic funds and bash not impact connected Fenbushi related entities.”

More than 1,200 days later, Shen said improved blockchain analytics and artificial quality (AI) tools person made the stolen plus travel paths importantly clearer. His squad has gathered what helium described arsenic further cardinal clues and grounds pointing to wherever the funds moved aft the archetypal theft.

The drained assets were funneled done mixing services earlier being converted into different tokens, with immoderate flows ending successful DAI. That layering made aboriginal tracing difficult, but Shen indicated that cross-platform collaboration has changed the equation.

Onchain researcher ZachXBT and information researcher Tayvano person already assisted successful freezing astir $1.2 cardinal successful related assets. Shen said his squad is moving to formally assertion those funds and volition grant the bounty connected them promptly. He besides credited Chiachih Wu, Bitrace Team, and Slowmist Team for their ongoing contributions.

The bounty is structured connected a sliding standard based connected contribution. Anyone whose enactment leads to a worldly betterment — individuals, white-hat researchers, analytics firms, oregon different organizations — is eligible careless of inheritance oregon affiliation.

Shen posted the full announcement successful Chinese connected X, calling connected anyone with credible accusation to travel forward. The interaction email for submissions is [email protected].

The lawsuit illustrates a persistent vulnerability successful self-custodied crypto holdings: effect operation exposure. Even experienced investors with important holdings stay astatine hazard erstwhile betterment phrases are stored oregon transmitted insecurely. Onchain information is permanent, and successful Shen’s case, that permanence could enactment successful his favor.

Recovery remains difficult. The funds person had much than 3 years to beryllium laundered and dispersed crossed wallets and services. Shen has acknowledged the situation but expressed assurance that modern forensic tools springiness his squad a credible way forward.

Whether the bounty produces results volition beryllium connected whether anyone with nonstop cognition of the attacker’s individuality oregon wallet infrastructure comes forward. The probe is ongoing, and Shen said updates volition beryllium posted to his X account.

FAQ 🔎

• What was stolen from Bo Shen’s crypto wallet? Approximately $42 cardinal successful cryptocurrency — including $38.2 cardinal successful USDC, 1,607 ETH, 720,000 USDT, and 4.13 BTC — was drained from his idiosyncratic Ethereum wallet connected Nov. 10, 2022.
• How was Bo Shen’s Ethereum wallet hacked? Security firms SlowMist and Beosin determined the attacker gained entree by compromising Shen’s mnemonic effect phrase, allowing nonstop power implicit the wallet.
• What is the bounty Bo Shen is offering for the stolen crypto? Shen is offering 10% to 20% of immoderate recovered magnitude to individuals oregon organizations that marque a worldly publication to recovering the funds.
• How tin idiosyncratic taxable tips astir the Bo Shen crypto theft? Anyone with credible accusation tin interaction Shen’s squad straight astatine [email protected].