Home CryptocurrencyAltcoin Chinese VC loses $42M in cryptocurrencies due to compromised mnemonic

Chinese VC loses $42M in cryptocurrencies due to compromised mnemonic

by SuperiorInvest

According to the new post on twitter On November 23, Bo Shen, a general partner at venture capital fund Fenbushi Capital, which advises Vitalik Buterin, claims that $42 million worth of funds were withdrawn from his Trust Wallet on November 10. Shen, who grew up in China but now lives in Atlanta, says the funds were his personal property and the misuse does not involve entities associated with Fenbushi.

“The incident was reported to local law enforcement. The FBI and lawyers were involved. Civilization and justice will eventually triumph over barbarism and evil. That’s the iron law of human society. It’s only a matter of time.”

Later today, blockchain analytics company SlowMist confirmed the exploit and said the reason for the theft was a “compromise of mnemonics.” The firm also revealed that 38,233,180 USD Coin (USDC), 1,607 Ether (ETH), 719,760 Tether (USDT) and 4.13 Bitcoin (BTC) were drained from a combination of addresses belonging to Shen. The stolen funds were later deposited into the ChangeNow and SideShift exchanges.

“In addition, we verified this during the investigation @boshen1011‘s Trust Wallet is the official version and not a fake wallet. Trust Wallet itself has no security issues related to this theft.”

On Twitter, Shen thanked users for their supportive comments and reiterated his “commitment to blockchain technology and decentralized services.” The last recorded hack of Bo Shen wallets took place on December 8, 2016, after hackers gained unauthorized access to a database backup from forum.ethereum.org. Shen, an early investor in Ethereum and Augur, had both tokens siphoned from his wallets, which were sent to an instant exchange service on Poloniex. Some of the funds have since been recovered.

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