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“Blockchain Bandit” Has Awoken: Chainalysis

Wed, 01/25/2023 - 18:13
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Alex Dovbnya
The recent activity is a good reminder that prudent practices around private key storage are crucial in order not to fall victim to such blockchain bandits
“Blockchain Bandit” Has Awoken: Chainalysis
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The mysterious Blockchain Bandit has been raiding Ethereum wallets since 2016, amassing a treasure trove estimated to be worth over $90 million, according to a Wired article. What began as a surprise algorithm developed by an unknown hacker to exploit various vulnerabilities in weak private keys has ballooned into one of the biggest crime sprees in blockchain history.

Recently, Chainalysis identified that funds stored in several Ethereum wallets held by the “Bandit” were on the move.

In total, $90M of crypto assets (51,000 ETH plus 470 BTC) were transferred out of the address associated with the Blockchain Bandit’s thefts and sent to other wallet addresses. It is likely to be an attempt to monetize their recent haul without getting detected or traced by the authorities. 

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The recent activity could indicate that the international cybergang is looking to capitalize on the current price spike being seen across many cryptocurrencies as retail investors rush to get positions in digital assets before markets turn bearish again.

Chainalysis claims that it will continue to monitor the situation and share upcoming updates. At the same time, it encourages users to follow the best practices around private keys.

The blockchain sleuth recommends that crypto users use reputable wallets that generate strong private keys. Moreover, it encourages users to use hardware wallets that are less susceptible to hacking attempts.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at