An EU-based cryptocurrency entity is under investigation after an apparent theft exceeding $106 million, according to on-chain analyst ZachXBT. The incident, which occurred on November 1, involved multiple centralized exchange accounts and has renewed concerns about security vulnerabilities at centralized venues.
ZachXBT said the attacker initially withdrew funds in USDC and USDT, then converted USDC into Ethereum (ETH) over the last 24 hours. The ETH was reportedly transferred to exchanges including WellWallet and Kyrrex, and later swapped into the privacy-focused cryptocurrency Monero (XMR). The funds were then distributed across multiple addresses, a pattern investigators described as an effort to obscure the trail and complicate blockchain tracking.
The use of Monero is significant because its privacy features hide sender, recipient, and transfer amount information. The EU-based victim has not yet been publicly named, and it remains unclear whether authorities have formally intervened. The case highlights the money-laundering risks associated with privacy coins and the continuing security weaknesses of centralized exchange accounts.
Traders are now watching for potential regulatory responses and any recovery of the stolen funds. The event may weigh on confidence in stablecoins and centralized platforms, especially as the broader market was already unsettled by reports of a separate $6.3 billion hack attack on Binance.
