Bitcoin whale has been drained for 3,520 BTC or $330M

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An ancient Bitcoin whale has been reported drained for 3,520 BTC or $330M to a fresh address, bc1qc. The stolen funds were quickly laundered via several exchanges, including Kucoin. The proceeds were swapped for privacy-focused cryptocurrency, Monero (XMR), with the size of the transactions resulting in a 50% spike in the price of Monero.

The attackers' choice to use Monero (XMR) for laundering is a calculated one. As a leading privacy-focused cryptocurrency, Monero is designed to obscure transaction details, making it exceptionally difficult for law enforcement or blockchain analysts to trace the final destination of the $330 million. This large-scale conversion to XMR demonstrated a significant market impact, triggering the 50% price spike and illustrating how a single actor's illicit moves can create massive volatility.

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The Bitcoin whale had originally consolidated their stash of Bitcoin on 1Hc4E in 2017, where it lay dormant for the past eight years. The origins of this stash came from several addresses as old as 2014 with transfers from Coinbase, among others. This address reawakened last month, with its entire balance transferred to bc1qx before it was compromised.

The "ancient" status of this Bitcoin whale makes this security breach particularly notable. The funds, having originated as far back as 2014, represent a significant piece of Bitcoin's early history. The fact that the address remained dormant for eight years suggests the holder was a long-term believer. The compromise happening after the funds were moved from their original 2017 consolidation address highlights the risks involved even for experienced, long-term holders when managing and transferring significant digital assets.