Crypto Scandal Archives

WazirX Under Fire: ₹342 Crore Payment to Founder-Owned Firm Sparks New Governance Crisis

WazirX is back in the headlines—and not for a good reason.

A spicy detail in Zanmai Labs’ annual report just dropped: a massive ₹342 crore was paid to Qizil21 Software Pvt Ltd, a company owned by WazirX co-founder Nischal Shetty and his wife. That’s up from just ₹28 crore the year before. No explanation. No receipts.

And that’s not all. Another Shetty-linked company, Shibuya Labs, got ₹35.5 crore one year, then barely ₹2 crore the next. Forensic sleuths say these kinds of money swings often raise red flags—especially when the money’s moving between companies owned by the same fam. 🧾🔍

This comes on the heels of WazirX’s ₹2000 crore hack in 2023, which left thousands of users locked out. Crypto community group TooFAAN Army has been digging deep and now they’re asking the real question: Did money leave user funds before the hack ever happened?

Adding to the mess? Binance’s 2022 plot twist when CEO CZ (Changpeng Zhao) claimed they never actually bought WazirX—even though it was announced back in 2019. Why the backpedal? With these new money trails, it may not have been so random after all.

Even worse, Shetty allegedly told users that unless they agreed with his terms, funds wouldn’t be released until the Binance beef was settled. Meanwhile, ₹342 Cr quietly slid out the back door.

Now, the Enforcement Directorate is circling again, and lawyers say more summonses could hit soon. Under Section 188 of the Companies Act, these payments need to show legit business reasons—or they could trigger money laundering probes.

WazirX was once India’s crypto poster child. Now? It’s looking more like a cautionary tale. With no comments from the team and angry users still waiting for answers, everyone’s wondering: Was the real problem hackers—or something deeper inside?

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Breaking ! Resupply Hack: $9.6M Vanishes in Minutes After Smart Contract Glitch

Resupply Hack: DeFi Glitch Leads to $9.6M Crypto Theft

Another day, another DeFi breach—infamous hack is now trending after the decentralized protocol Resupply confirmed a critical exploit in its wstUSR market. A flaw in its ResupplyPair contract let a hacker borrow massive amounts of crypto with nearly zero collateral, draining $9.6 million in minutes.

The attacker cleverly manipulated the price of a token called cvcrvUSD. This triggered a logic glitch in the smart contract, making it think the collateral was worth way more than it actually was. Using this trick, they borrowed large amounts of reUSD, swapped it into other tokens like ETH and USDC, and split the stash across multiple wallets.

Rough breakdown of stolen assets:

ETH: ~$2 million
USDC: ~$3.6 million
Others: Remaining amount across stablecoins and tokens

It has paused all activity in the wstUSR market to prevent further damage. Thankfully, other parts of the protocol remain untouched. The team is currently investigating and will publish a full post-mortem soon.

Quick Take:
This hack is a brutal reminder that even well-known DeFi protocols can have fatal flaws—especially when they rely on external price oracles. As the ecosystem scales, the pressure to audit, simulate, and harden these systems is growing fast. For now, Resupply users are left hoping for recovery options—or at least lessons learned.

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Breaking ! IntelBroker Exposed: UK Hacker Charged in $25M Data Theft Case

IntelBroker Charged: U.S. Unmasks Alleged Mastermind Behind $25M Data Heist

It’s official—intelbroker has a face. U.S. prosecutors just unsealed charges against Kai West, a 25-year-old British national accused of running a global hacking empire responsible for more than $25 million in damage. West, known online as “IntelBroker,” allegedly operated BreachForums and led coordinated cyberattacks that breached sensitive company systems around the world.

Bitcoin Traces, Data Leaks & a Dark Web Empire

Between 2023 and early 2025, West reportedly posted or sold stolen data over 150 times—sometimes for profit, sometimes to boost clout through forum credits. Prosecutors say he ran BreachForums between August 2024 and January 2025, a dark web marketplace infamous for trading hacked corporate data.

Although IntelBroker has taken credit for past attacks on AMD, Cisco, and HP Enterprise, these companies aren’t specifically named in the current charges. Investigators instead tied West to a broader conspiracy to commit computer intrusion, aided by clever blockchain tracing. Despite preferring Monero for its privacy features, undercover agents were able to connect Bitcoin payments to West’s emails and crypto wallets.

West was arrested in France in February 2025 and is awaiting extradition to the U.S. If convicted, he faces up to 20 years in prison. The case, filed under U.S. v. West, 25-cr-134, is being prosecuted in New York’s Southern District. His legal counsel remains unnamed.

Quick Take:
The intelbroker bust is one of the biggest dark web takedowns since BreachForums first launched. It’s a wake-up call for data security worldwide—and a warning that even privacy coins and forums can’t guarantee anonymity forever.

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Half of $1.4B Stolen in Bybit Hack Vanishes Through Crypto Mixers

Three months after one of the largest crypto heists in history, nearly $644 million of the $1.4 billion stolen from Bybit has vanished from traceable blockchain records, according to new data.

Blockchain analysis shows that about 49.5% of the funds remain traceable, while only 4.5% ($63 million) has been frozen by exchanges and law enforcement. The majority of the stolen funds have been processed through sophisticated cryptocurrency mixing services designed to obscure transaction trails.

The largest portion — $247.5 million in Bitcoin (966 BTC) — was funneled through Wasabi Wallet, a privacy-focused tool. Another $94.1 million was laundered through eXch, a mixing service that falsely claimed to shut down in April, but continues to operate via private back-end APIs, according to TRM Labs. The bybit hacks however keep getting out of hand.

Other privacy tools used include:

Tornado Cash: $2.5M in ETH
Railgun: $1.7M in ETH

These services obscure transactions by pooling user funds, making it nearly impossible to trace where the crypto ends up.

The attack’s origin was equally concerning. A report by Safe Wallet revealed that the North Korean hacker group TraderTraitor gained access to Bybit funds by compromising a developer’s laptop. Disguised as a stock trading simulator, a malicious Docker project led to the installation of malware, which stole AWS session tokens and bypassed multi-factor authentication.

Despite initial containment efforts, the incident reveals critical vulnerabilities in Web3 security hygiene, and highlights the ongoing challenges of crypto asset recovery once funds enter opaque mixing systems.

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Amalgam Scandal: $1M Crypto Fraud Unveiled, Founder Faces 82 Years

Amalgam Founder Exposed in $1M Crypto Scam

The founder of Amalgam just got smoked by the feds. Jeremy Jordan-Jones is now facing major legal heat after allegedly scamming investors out of over $1 million through fake crypto dreams and made-up partnerships.

He told people Amalgam was building next-gen blockchain point-of-sale systems. Sounded legit — until prosecutors dropped the receipts. Turns out Jordan-Jones faked collabs with the Golden State Warriors, a Premier League soccer team, and even a massive restaurant chain with 500+ locations. None of it was real.

Instead of building tech, he was balling in Miami — spending investor cash on high-end hotels, fancy cars, and designer fits. One major VC, Brown Venture Group, was told the funds would get Amalgam’s token listed on an exchange. Spoiler: it didn’t.

The U.S. Attorney didn’t hold back, calling the whole thing “brazen” and warning future scammers that their time is coming. It gets worse: Jordan-Jones also allegedly used fake docs to get a business credit card, then racked up $350K before the bank pulled the plug.

Now he’s facing charges for wire fraud, securities fraud, lying to banks, and aggravated identity theft. If convicted, dude could be locked up for 82 years.

It’s another cautionary tale in crypto — when the founder’s flexing more than coding, that’s your red flag.

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Crypto Fear Rises: 5 Shocking Kidnappings That Prove It’s Getting Dangerous IRL

Crypto’s IRL Danger Level Just Went — 5 Wild Kidnapping Cases You Need to Know

Crypto may live on the blockchain, but the threats are very real AF. In 2025, the execs are scrambling for private security squads as kidnappings and ransom attacks go full GTA.

France is basically on high alert. 🧨 Earlier this year, Ledger co-founder David Balland got snatched and held for ransom. He made it out alive — thanks to a police op — but things just kept spiraling.

In May, a crypto bro’s dad had a finger chopped off before cops rescued him near Paris. Not long after, Paymium CEO Pierre Noizat’s daughter and grandson were almost abducted — until a random Parisian came in extinguisher blazing and saved the day. 🧯

Even the U.S. isn’t safe. After a Vegas crypto event, a guy got kidnapped at gunpoint by three teens and dumped 70+ miles away in the Arizona desert.

French officials are now offering security briefings and telling crypto people to ditch flashy flexes. Meanwhile, its security OG Jameson Lopp says this year’s already seen 20+ in-person attacks. The blockchain’s still decentralized — but danger is centralized and getting real.

Stay safe, bag holders.

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Insane !12 Busted in $15M Crypto Laundering Ring : Hong Kong Cracks Down on Web3 Fraud

Twelve people just got clapped by Hong Kong and mainland China cops for laundering HK$118M ($15M) through fake bank accounts + crypto exchanges. Yeah, they were literally running the operation from an apartment in Mong Kok.

These fraudsters used 500+ stooge accounts (that’s when you use someone else’s bank info) to wash dirty money from scams and flip it into it. Two rookies got caught mid-mission trying to drop stacks at a shop in Tsim Sha Tsui—police swooped in and grabbed HK$770K cash on the spot.

The Haul:

$134K in seized cash
560+ ATM cards
Phones & docs tied to bank ops

Most of these stooge accounts came from clueless friends and fam—yikes. This bust comes while fraud cases in HK are up 12% and 73% of them are tied to stooge accounts.

🛡️ HK’s Response:
Hong Kong’s pushing back hard with a new tool called CryptoTrace—made with the University of Hong Kong—to track shady crypto activity. Plus, the city’s still dealing with that fake “National Hong Kong Coin” scam that finessed $3.1B in 2024.

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Tether’s Blacklist Lag Lets Hackers Move $78M in USDT Before Freeze

Hackers Exploit Tether Delay to Snag $78M in USDT

Tether’s wallet blacklisting system just got exposed for having a major weak spot — and hackers were quick to take full advantage.

A new report from blockchain compliance firm AMLBot, released on May 15, reveals that over $78 million in USDT was successfully moved by criminals before Tether could freeze their wallets. The key issue? A lag in it’s two-step blacklist system.

Here’s how it works: Tether first publishes a public “warning” on-chain when a wallet is flagged, but the actual freeze comes later. That delay — sometimes up to 45 minutes — is all attackers need to make a clean escape.

In one case shared by AMLBot, the warning hit at 11:10 UTC, but the wallet wasn’t frozen until 11:54 UTC. That’s nearly an hour for the hacker to move funds — and they did.

Between Ethereum and Tron, $28.5M and $49.6M respectively were funneled out of flagged wallets from 2017 to 2025. Out of 3,480 wallets flagged on Tron, 170 managed to beat the system, each moving close to $292K before the freeze kicked in.

“This isn’t just a tech bug — it’s a playbook for bad actors,” AMLBot warned. Hackers can now monitor Tether’s blacklist signals in real time and act fast.

Tether pushed back on the claims, saying the lag doesn’t mean the system is broken. It highlighted ongoing collaboration with 255+ law enforcement agencies across 55 countries and mentioned that $2.7B in USDT has already been frozen.

Still, they admit there’s room for improvement — and say they’re working to tighten the gap.

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South Korea Busts $540K Crypto Scam Ring; 25 Arrested in Fake Exchange Fraud

ICYMI, South Korea just cracked down on a fake crypto scam investment ring that scammed people out of 734M won (~$540K USD). Police in Jeju nabbed 25 scammers running four sketchy “crypto advisory” call centers that promised sky-high returns.

These fraudsters played pro, acting like crypto team leads and guiding victims to sign up on fake exchanges. Victims were shown fake dashboards with phony profits, making it look like they were winning big. Spoiler alert: they weren’t. These crypto scams really went out of hand.

Once people tried cashing out? Crickets. Funds frozen. Scammers gone.

Of the 25 caught, 20 are now in custody. The rest? Facing charges. But cops think more victims are out there—so this could get even bigger.

Pro tip: If someone slides into your DMs promising fast crypto gains, it’s probs a trap. Always DYOR (Do Your Own Research).

Meanwhile, in a twist, all three South Korean prez candidates are vibing with Bitcoin ETFs and crypto investment. Wild times for Korean crypto.

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Terror ! Crypto Terrorism: U.S. Man Gets 30-Year Sentence for Funding ISIS with Digital Assets

Crypto Terrorism: U.S. Man Gets 30-Year Sentence for Funding ISIS with Digital Assets

In one of the most severe punishments ever handed down for digital finance-related terror funding, 35-year-old Mohammed Azharuddin Chhipa has been sentenced to more than 30 years in federal prison for sending cryptocurrency to ISIS operatives overseas.

The Virginia man was found guilty of funneling over $185,000 to the Islamic State of Iraq and al-Sham (ISIS) from 2019 to 2022, with funds primarily used to aid detained female ISIS members and support frontline fighters.

Chhipa ran a coordinated operation, raising donations via social media, organizing cash pickups, and converting the money into crypto before transferring it to Turkey. From there, it was smuggled into Syria for ISIS activities including prison breaks and funding missions.

Court files revealed that Chhipa worked closely with an active ISIS cell member inside Syria, showing the deep entanglement between digital currencies and modern terror networks.

After a years-long investigation by the FBI Washington Field Office, Chhipa was arrested and convicted in December 2024 on multiple federal charges related to material support of terrorism.

This case has reignited debates on the use of crypto terrorism, calling for tighter regulation and monitoring of cross-border blockchain-based transactions.

Almost every month we get a case of crypto scandal but this might be the first we’ve heard of Crypto Terrorism, Is the impeccable security blockchain provides being used against itself ?

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