Monero’s 50% Price Surge Linked to Suspected $330M Bitcoin Theft, Claims ZachXBT
A recent onchain analysis has revealed a suspicious transfer of 3,520 Bitcoin, valued at approximately $330 million, which has led to a significant price spike for the privacy-focused cryptocurrency Monero (XMR). According to ZachXBT, the funds were quickly laundered through various exchanges and converted into Monero, causing a 50% surge in its price.
Bitcoin Theft Triggers a Surge in Monero Price
On April 28, ZachXBT, a well-known onchain sleuth, flagged a suspicious transaction that involved the movement of 3,520 Bitcoin, equivalent to over $330 million, from an unknown wallet to a new address. Following the transfer, the stolen Bitcoin was rapidly laundered through six instant exchanges and converted into Monero, a cryptocurrency known for its privacy features.
The large-scale conversion caused a significant price surge in Monero, with the cryptocurrency reaching an intraday high of $339, a 50% increase from previous levels. At the time of writing, Monero has settled slightly, but still remains 25% higher than its price 24 hours earlier, trading at around $289.
Lazarus Group Involvement? ZachXBT Weighs In
When questioned about the possible involvement of North Korea’s Lazarus Group in the theft, ZachXBT dismissed the theory, stating that it was “highly probable” the hackers were not part of the infamous group. Instead, ZachXBT suggests that independent hackers might be responsible for the $330 million theft.
Cryptocurrency Used in Criminal Activity: Mainstream Coins vs. Privacy Coins
In a recent interview with Cointelegraph, Chainalysis, a blockchain analytics firm, noted that while privacy coins like Monero are gaining popularity for illicit activity, mainstream cryptocurrencies like Bitcoin and Ethereum continue to be the preferred choices for most cybercriminals.
According to Chainalysis, privacy coins have limitations due to reduced liquidity and the fact that many major exchanges have delisted coins like Monero. The firm also pointed out that the transparency of blockchain technology allows law enforcement agencies to trace illicit funds, even if privacy coins are used.
Interestingly, a 2024 leaked video from Chainalysis demonstrated how the firm was able to track Monero transactions despite the privacy-focused nature of its blockchain, showing that Monero may not be as untraceable as once thought.
Monero Gains Wider Retail Acceptance Amid Privacy Concerns
Despite the ongoing concerns over its use in illicit activity, Monero is gaining increasing retail acceptance. Recently, Spar supermarket locations in Switzerland began accepting Monero (XMR) as a form of payment. This integration, which was made possible through partnerships with DFX Swiss and OpenCryptoPay, marks a significant step in the growing acceptance of privacy coins in the retail space.
One Monero user shared their experience of purchasing organic cacao at a Spar store in Kreuzlingen using XMR, highlighting how the cryptocurrency is becoming more integrated into the mainstream retail environment.
Conclusion: Monero’s Role in the Crypto Landscape
Monero’s privacy features continue to make it a go-to choice for those seeking anonymity in the crypto world, despite its potential use in illegal activities. The recent $330 million Bitcoin theft and the resulting price surge highlight the ongoing battle between privacy and security in the cryptocurrency space.
As the market for privacy coins grows, so does the need for retailers and exchanges to balance the benefits of privacy with the risks of illicit activity. Monero’s rise in retail acceptance suggests that privacy may be one of the key factors driving the future of cryptocurrency, even as concerns over its role in criminal activity persist.
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