Deniz 
Recently, the cryptocurrency exchange known as Rain in Bahrain experienced a significant security compromise. According to the findings of blockchain expert ZachXBT, the exchange had a loss of $14.8 million on April 29, 2024. Ever since the hack, the criminals’ wallets, which contained 1,881 ETH and 137.9 BTC, have remained unaltered.
According to ZachXBT, it appears that the cryptocurrency exchange Rain was most likely defrauded out of $14.8 million when their Bitcoin, Ethereum, Solcoin, and XRP wallets noted some odd withdrawals occurred. He stated that Bitcoin and Ethereum may be transferred to quick exchanges in a short amount of time.
A wallet with the final letter of d609 received a number of transactions from Bitgo multisignature wallets, and according to additional data, the Ethereum cash ended up in that wallet during the course of the transactions. The day of the breach, there were a total of 26 transactions that took place from these wallets to the d609 wallet. These transactions included the transfer of ETH as well as other currencies. In a short amount of time, customers of Uniswap swapped more than 590 ETH for further ETH, coupled with around 20 billion Shiba Inus, 12,500 Chainlink, $240,000 in Tether, and $250,000 in USD Coin.
As the situation evolved, Arkham Intelligence noticed that the d609 address was trading ETH for a variety of tokens, including Aave, Yearn Finance, and MakerDAO. These transactions were taking place. Given the intricate nature of this web of transactions, the sophisticated methods that hackers use to avoid detection are on plain show.
Rain Incident Sparks Crypto Security Concerns
The Rain incident suggests a crypto industry problem. Similar attacks and exploits cost investors $2 billion last year, and $333 million in the first quarter. Another trade protocol flaw cost $600,000, but a 10% bug bounty recovered most of it.
On May 6, the Gnus AI community lost $1.27 million in a Discord breach days after the Rain attack. After accessing team members’ private conversations, the attackers minted 100 million fraudulent GNUS tokens crashed the price. The company has since advised users to avoid buying the undervalued coin and is taking steps to limit the impact.
A smart contract vulnerability hacked Galaxy Fox Web3 on May 10. Attackers stole over 108 ETH, underscoring the need for better web3 security and access limits, especially on NFT and play-to-earn platforms.
On May 10, a TRUSU Wrapper contract weakness caused major transaction processing issues for Tsuru. This vulnerability allowed custom code to bypass contract operations, causing out-of-gas issues and transaction disruptions.
These instances across platforms demonstrate the financial losses and operational interruptions caused by hacks and highlight the need for stronger bitcoin and Web3 security.