A figure known as the “Blockchain Bandit” is back after five years, moving 51,000 ETH worth about $172 million from ten inactive wallets to a multi-signature wallet. The sudden transfer of funds, which have been inactive since 2018, has raised concerns among cybersecurity experts. They think it might suggest plans for liquidation, laundering, or new cyber attacks.
The Blockchain Bandit became well-known in 2018 for taking advantage of Ethereum wallets that had weak private keys, stealing millions by guessing them. The attacker focused on wallets with weak keys, usually from programming mistakes, and used automated tools to find and take advantage of weaknesses.
A hacker is thought to have taken more than 50,000 ETH from about 10,000 wallets. The phrase “Blockchain Bandit” was first used in a 2019 WIRED article.
The recent move to a multi-signature wallet indicates plans for important transactions, possibly related to laundering via mixers or decentralized exchanges, or even selling off assets.
The hacker could be waiting for the right market conditions to make more money. The situation is worrying because the crypto industry is facing ongoing cyberattacks, leading to losses of $2.3 billion in 2023.
The return of the Blockchain Bandit highlights ongoing weaknesses in the blockchain system. The crypto community is cautious as they think about the reasons for this big transfer and what it means for future security in the industry.
