- Hackers stole 3,520 BTC ($330M) and laundered it through Monero, causing XMR to spike 50% amid rising volatility.
- Experts confirm no tech update fueled XMR’s surge—laundering activity and market demand drove the sharp price movement.
- Chainalysis highlights privacy coins’ legal challenges as Monero’s role in illicit activities faces renewed regulatory scrutiny.
A huge hacking incident that led to the theft of 3,520 BTC worth $330.7 million has caused a spike in the price of Monero (XMR). ZachXBT, an on-chain investigator, shared a massive transaction by scammers, in which the victim’s bitcoins were transferred to the address 3QGiiHiSBgmshfsAqkmphjwXCQWgguVZgY9uFJaB8L77.
The funds were ‘mixed’ through several exchangers and exchanged for Monero, causing a stir in the market.
Movement of Funds and Immediate Market Impact
After the transfer, the stolen Bitcoin was quickly sent to over six instant exchanges in a very short period. The funds were bought and exchanged for Monero, increasing the demand for XMR. This prompted a 50% rise in the Monero price, touching $339 with slight corrections afterward.
Professionals recognized that the price change from the previous week was not due to any advancement in the technology or usage of the product or service. However, the additional buy orders in the XMR-BTC order books were filled during the activity. Monero’s volatility has increased because its price cut through a major technical resistance level, while the Relative Strength Index surged above 83.
Speculations Around the Source of the Theft
According to ZachXBT, the victim was probably a long-time Bitcoin enthusiast with prior investments in exchanges such as Gemini, Coinbase, or River. Further analysis confirmed that the money flow was divided into minor fractions and allocated in several transactions in instant exchanges, which was characteristic of laundering. The one adopted suggested that the actors behind the transfer were trying to reduce audibility.
Responding to rumors, ZachXBT argued that the theft may have been performed by mundane and professional thieves, not the North Korean hackers associated with the Lazarus Group. However, it was attributed more to independent actors instead. Chainalysis provided more information and clarified that although several digital assets, such as Monero, offer high anonymity levels, criminals do not desire them because they offer low liquidity and are delisted from exchanges.
Privacy Coins and Regulatory Challenges
This has again raised questions on the position of privacy coins, such as Monero, in the general crypto space. While there are advantages to the privacy features for users, there are issues for the regulators and the enforcement agencies in tracing illegal activities in Monero.
Chainalysis restated that most illicit activities directly require less liquid and less easily flowable cryptocurrencies like Bitcoin and Ethereum. However, privacy coins help to keep transactions anonymous, thereby failing in volume and legal requirements that restrict their usage for large-scale criminal activities.
At press time, Monero was approximately 12% higher than its price 24 hours ago, trading at approximately $256. Bitcoin remains stuck below $94,000 despite other assets’ positive outlook. The case is still under investigation, and blockchain specialists and police officers are actively tracking the situation.
