Category: Crypto Scandal

Crypto scandals refer to events involving fraud, mismanagement, or unethical behavior within the cryptocurrency industry. These incidents often lead to significant financial losses, loss of trust, and negative public perception of cryptocurrencies and blockchain technology.

WazirX Hack: Authorities Recover $3M in Frozen Assets

Investigators froze $3M stolen from WazirX’s $230M hack. They blamed it all on North Korean hackers. Recovery efforts continue with blockchain forensics and legal action.



Six months after a massive cyberattack rocked WazirX, investigators have frozen $3 million in stolen cryptocurrency. The attack that went down on July last year, in India made hackers a massive $230 million in digital assets.

This $3M recovery milestone gives a glimmer of hope to victims, signaling progress in the hunt to reclaim their stolen funds. Zettai Pte Ltd, WazirX’s parent company, has teamed up with law enforcement, forensic experts, and legal teams to track down the cash.

In a major twist, a joint statement from the U.S., South Korea, and Japan pinned the attack on North Korean hackers. Yup, DPRK cybercriminals are getting the blame.

WazirX founder Nischal Shetty is fired up, calling this recovery “just the beginning.” The company’s game plan is all about relentless effort to maximize fund recovery.

Jason Kardachi, from restructuring experts Kroll, broke it down: blockchain forensics plus legal actions are key tools to recover more of the stolen loot.

But let’s be real—chasing crypto thieves, especially international ones, is like solving a puzzle with missing pieces. The mission isn’t over, but at least the fight’s on.

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North Korean Hackers Stole $659 Million in Crypto Last Year

In a rare joint statement, South Korea, the U.S., and Japan blamed North Korean hackers for stealing a record $659 million in cryptocurrency previous year. The stolen funds are believed to be going toward North Korea’s illegal weapons programs.

This marks the first time any three nations have blamed North Korea and that also directly for such insane large scale crypto robbery. Among the major targets were India’s WazirX exchange, losing $235 million, and Radiant Capital, which suffered a $50 million hack. An additional $374 million was stolen from platforms like DMM Bitcoin, Upbit, and Rain Management, according to industry reports.

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Hacking groups like Lazarus, linked to North Korea, are behind these thefts. They executed sophisticated cyberattacks, often employing malware to breach systems. “The DPRK’s cyber program poses a serious threat to global financial stability,” the statement warned.

The statement urged blockchain firms and crypto exchanges to bolster their defenses and avoid unknowingly hiring North Korean IT workers. “Our governments are committed to preventing thefts by the DPRK and recovering stolen funds,” it added.

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North Korea has a long history of using cybercrime to fund its missile and weapons programs. As these attacks grow in frequency and scale, the three nations pledged to work together to counter these rising cyber threats.

Thailand Police Bust Bitcoin Mining Operation Stealing Millions in Power

Thailand’s police have raided a large-scale illegal Bitcoin mining facility in Chon Buri, seizing 996 rigs of computer miners and finding the operation siphoning millions of dollars’ worth of electricity. The joint operation by the Crime Suppression Division and Provincial Electricity Authority targeted a facility operated by JIT Co. on January 8.

Authorities said JIT Co tampered with power meters to run the mining rigs without detection, operating on stolen electricity at night and switching to legal power during the day. While the site had solar panels installed, they were not connected to the mining equipment. The stolen electricity is estimated to have cost the state over $2.88 million (hundreds of millions of baht).

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Mining Bitcoin in Thailand is notoriously expensive, with the cost to mine a single Bitcoin coming in at around $17,930 — 825 times the average monthly electricity bill for a Thai household.

Although the Bangkok Post identified JIT Co. as being linked to the operation, investigators have yet to name suspects, adding that arrest warrants are sought, sources said.

There have been various reports of crypto mining crimes across Southeast Asia. Malaysian authorities estimated the value of the electricity used by crypto mining companies to be about $723 million from 2018 until 2023 – equipment seized by the authorities there usually faces a crushing end.

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Meanwhile, Thailand is going another direction. The country tests crypto payments as a pilot in Phuket in hopes of luring back foreign tourists. Former PM Thaksin Shinawatra recently called on the government to open up to cryptocurrency if it wanted to be globally competitive.

Hackers Steal $840K from Orange Finance on Arbitrum

Orange Finance, one of the most utilized DeFi protocols on the Arbitrum blockchain, has been exploited for upwards of more than $840,000. The hacker attacked vulnerabilities in the smart contracts of the platform that compromised the admin address and then siphoned the funds.

According to the Cyvers Alerts, the stolen assets were immediately converted into ETH, which further complicates tracking or recovery. An investigation into the breach was taken up by the Orange Finance team, who have as of now kept under wraps full details of how it happened.

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As a precaution, users are called upon to revoke approvals granted to the platform and abstain from any direct interaction with their compromised contracts. Orange Finance later confirmed that indeed the attacked smart contract is no longer within their control while assuring users that efforts are being directed to secure the system against possible further damage.

The team has also contacted the hacker through Arbiscan and offered him a deal to return the money. They said they would treat the breach as a white-hat hack and would not press charges against the hacker if he cooperated within 24 hours.

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This is an indication that there are still risks in DeFi, and users must be very careful. Orange Finance promised to keep the community updated as they try to recover the stolen funds.

Crypto Trader Gets Scammed Out of $520K in LINK by Fake Bridge Hustle

A crypto trader got scammed an outrageous amount of $520K worth of Chainlink (LINK) tokens after the person fell for a really sketchy and scummy fake bridge scam shared in a Telegram Decentralized Finance group. The scammers had promised the individual a faster and smoother way and procedures to move tokens but did the most heinous act of cleaning out the trader’s wallet, showing just how ruthless phishing scams in crypto have become.

Imagine losing half a mil in crypto because you clicked on the wrong link. That’s what happened to one DeFi trader who got punk’d by fraudsters running a fake bridge scam. The victim turned over 22,415 LINK tokens, valued at more than $520,000, after being tricked into signing a malicious transaction back on January 4, says Major L.

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Here’s the tea: the scammers dropped a link in a Telegram DeFi group, hyping up their “faster bridging solution.” It looked legit, but it was all cap. The moment the trader signed off, the funds were gone.

According to Web3 security watchdog Scam Sniffer, in the previous year alone, crypto peeps have lost a brutal $494 million to wallet-draining scams-a 67% increase from last year. And these scammers are leveling up, pulling stunts like fake Google Ads and even phishing through Zoom calls.

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Lesson here? Don’t trust random links, double-check URLs like your life depends on it, and stay sus of anyone being *too* helpful. Crypto space is a jungle-move smart or get rugged.

Crypto Mining Scam in Vietnam Defrauds Over 200 Victims

Over 200 scammed in Vietnam via a fake crypto mining site, BitMiner; victims lost $157K. Cops nabbed 4 fraudsters.




Over 200 people in southern Vietnam got scammed big time by a shady crypto mining site called BitMiner. The fake platform, with a Singapore domain, promised easy cash through Bitcoin mining but ended up swiping VND 4 billion (around $157K) from its victims.

The brains behind this sketchy operation? A group of four, led by Tran Minh Quang, 41. They got busted in Dong Nai Province, near Ho Chi Minh City, for running what police say was a full-on fraud setup. These guys faked being a Dubai-based legit company, using flashy ads to reel people in.

Here’s the full pic: they sold fake crypto mining packages like “Red Diamond” and “Green Diamond” (yeah, sounds fancy) with promises of insane profits. They even recruited collaborators who helped boost their scam, handing out materials and fake trade accounts to make the whole thing look legit.

But that house of cards came tumbling down when the authorities caught on to their game. Now they are left to face the music alone and victims are left to wonder if they will ever see their money again.

Well, we can conclude, if it sounds too good to be true, it probably is—especially in the wild world of crypto.

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Karachi Crypto Trader Abducted by Fake Cops, Loses $340K

A crypto trader in Karachi was abducted and robbed of $340,000 (90 million PKR) by men impersonating police officers in a fake “police van.” The victim, Arsalan, was taken outside his office in Manghopir on December 25 and subjected to a harrowing ordeal.

According to police reports, five individuals pretending to be officers forced Arsalan into their van, blindfolded him, and transported him to a location near Karachi’s passport office. At gunpoint, the gang seized his phone, stole 8,000 PKR in cash, and accessed his crypto and bank accounts, transferring $340,000 then Arsalan was abandoned near Mazar-e-Quaid.

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Arsalan claims and strongly believes he can identify the culprits, who had approached him weeks earlier pretending to be in search of crypto investment guide. He named four suspects Muzzamil, Hamad, Ashir, and Zaman but still one remaining person hasn’t been identified. . The police have filed charges and rightfully so under Sections 365-A (Kidnapping for Ransom) and 34 (Common Intention) and transferred the case to Karachi’s Anti-Violent Crime Cell (AVCC).

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Surveillance footage clearly captured a police vehicle going into Arsalan’s society roughly around the same time the crime occured. SSP Haider, overseeing the investigation, emphasized the need for stricter measures to prevent such impersonation incidents, urging relevant authorities to take action.

Europol Cracks Down on Underground Bankers Linked to Crypto Crime Network

Europol busted underground crypto bankers across six countries, seizing €25M+ in assets and weakening major crime networks.

Europol has just scored one of the biggest victories with the dismantling of an underground network of bankers running crypto dirty operations. These bankers weren’t your everyday fraudsters but professionals who had been involved in money laundering to feed drug trafficking, arms smuggling, and even contract killers.

It was a huge takedown: six countries, including Spain, Belgium, Bulgaria, the Netherlands, and the United States. The operation focused on a Europol-coordinated strike in Malaga, Spain, managing to arrest nine suspects with more than €25 million in cryptocurrency, €35,000 in cash, and a haul of gold and luxury goods. These arrests reached deep into the financial networks that keep international crime groups running.

Of course, it is not Europol’s first rodeo; after all, there were other similar busts like Operations GORGON and WHITEWALL, in which they targeted the financial backbones of the criminal networks. Plus with their expertise in organized crime and financial investigations, law enforcers are turning the screw on underground banking.

What is unique about this bust, however, is the international collaboration wherein agencies across Europe, even extending to the U.S., shared information and coordinated efforts. The results? The crime networks are left scrambling, and Europol has sent a very clear message: there’s nowhere to hide from them.

This operation does not just undermine criminal organizations; it shows that the key to really knocking out these criminal organizations is through international cooperation.

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Blockchain Bandit Resurfaces, Moves $172M in Stolen Ether After Two Years

The “Blockchain Bandit” moved $172M ETH after two years, exposing weak private keys and sparking crypto security concerns.

The infamous “Blockchain Bandit” is back in action, moving a massive $172 million in Ether (ETH) after a two-year break. On December 30, the hacker transferred 51,000 ETH from 10 different wallets to a single multi-signature address, consolidating the stolen funds. The transfers happened in batches of 5,000 ETH between 8:54 pm and 9:18 pm UTC.

The funds had been untouched since January 2023, when the Bandit also moved 470 Bitcoin (BTC). This hacker first made waves by using a method called “Ethercombing,” where they exploited weak private keys by guessing them with faulty code and random number generators. In total, the Bandit managed to crack 732 private keys, linked to over 49,000 transactions, according to blockchain investigator ZachXBT.

Experts in crypto security are very vocal on their concerns about the risks associated with vulnerable private key creation. Weaker random number generators can make it easy for hackers to copy keys and access wallets. The rise in bitcoin thefts coincides with the Blockchain Bandit’s comeback, with billions stolen in the last year alone.

To stop these assaults that target centralized exchanges and custodial platforms, experts are encouraging cryptocurrency users and platforms to bolster security with better key management, cold wallets, and regular system audits.

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Crypto Crime Boss Caught in India After Running Epic Scams

Summary: A major scammer from Uttar Pradesh has been nabbed in Cambodia for running a massive crypto hustle. His crew tricked thousands of people across South Asia, mixing fraud, human trafficking, and cyber slavery.

Crypto Kingpin’s Global Scam

Devendra Pratap Mourya, a UP native, was the mastermind behind a gang of 40+ cyber crooks in Cambodia. The mastermind behind this scummy act used fake apps and scams to steal from people worldwide, turning the stolen money into crypto. From scamming folks to using mule accounts and pre-paid SIMs, this crew was all about the digital grind, pretending to offer dream tech jobs that were actually a trap.

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From Dream Jobs to a Nightmare

Victims thought they were landing legit IT gigs, only to end up stuck in Cambodia with their passports taken away. Trapped in a cycle of forced cybercrime, many were pushed into scams they never signed up for. One fake app, Indira Securities, made Rs 67.7 lakh pretending to be a legit trading platform.

Scam Empire Exposed

Thanks to the investigation by Odisha police, this international crime ring got exposed. With Mourya behind bars, authorities are aiming to take down the whole crypto-fueled scam operation, shedding light on how digital currencies are powering these shady online hustles.

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