The notorious hacker known as the “Blockchain Bandit” has re-emerged, consolidating 51,000 Ether (ETH) worth $172 million into a single wallet after two years of inactivity.
According to blockchain investigator ZachXBT, the funds were transferred in batches of 5,000 ETH from 10 separate wallets to a multi-signature address labeled “0xC45…1D542” on December 30. The transfers took place between 8:54 p.m. and 9:18 p.m. UTC.
The stolen Ether had remained untouched since January 2023, when the hacker also moved 470 Bitcoins (BTC). Initially, the Blockchain Bandit amassed nearly 45,000 ETH by mining weak private keys, a technique dubbed “Ethercombing.”
This method involved systematically guessing private keys using faulty code generators and random numbers. 2019 reports by independent security assessors revealed that the hacker discovered 732 private keys linked to 49,060 transactions.
Crypto security experts warn that vulnerabilities in private key generation can lead to serious breaches. Hackers exploiting faulty random number generators can replicate private keys, gaining unauthorized access to wallets. This incident highlights the importance of secure key management and robust encryption practices.
The Blockchain Bandit’s re-emergence occurs amid a growing wave of cryptocurrency thefts. Security firm Onchain Cyvers reports that hackers stole more than $2.3 billion in 165 major incidents in 2024, a 40% increase from 2023. Most breaches targeted centralized exchanges and platforms depository, representing $1.9 billion in losses.
As the crypto world grapples with these challenges, experts are urging users and platforms to strengthen security measures, adopt cold wallets, and regularly audit systems to prevent such sophisticated attacks.
Also read: China denies hacking allegations over US Treasury breach
