TL;DR
- Kraken restricted accounts linked to a suspected $133M crypto theft, while analysts said it had blocked associated funds from moving through its platform.
- The suspected theft involves an unidentified EU entity
- The suspected losses reportedly reached more than $106 million.
Suspected $133M Crypto Theft Triggers Exchange Response
A suspected cryptocurrency theft involving an unidentified European entity has grown to more than $133 million, according to blockchain investigator ZachXBT, who identified additional withdrawals from centralized exchanges.
The updated estimate, published on November 3, follows an initial alert on November 2 that placed the suspected losses above $106 million. ZachXBT said another $27 million in withdrawals had been traced, with some transactions occurring after his first public disclosure.
The investigator suggested that a major financial institution in Western Europe may have been compromised and questioned whether the incident was being concealed. However, neither the identity of the suspected victim nor the cover-up allegation has been independently verified.
The case has drawn attention to how quickly stolen digital assets can move between platforms before exchanges, stablecoin issuers, or law enforcement authorities can intervene.
Kraken Restricted The Funds But Accounts Are Not Compromised
Kraken confirmed that it had restricted accounts connected to the suspected theft and was cooperating with law enforcement on recovery efforts. The exchange emphasized that the incident did not originate on its platform, adding that its security systems and customer accounts had not been compromised.
Crypto.com also confirmed that it had taken steps to block funds associated with the third-party incident from moving through its platform. OKX said it was looking into the matter.
Blockchain analytics firm Bitquery reported that the suspected stolen funds were withdrawn through accounts at Kraken, Crypto.com, and OKX. Its analysis also identified approximately $62.98 million in stablecoins converted into 27,553 Ether (ETH) within roughly four hours.
How the Suspected Attacker Moved the Crypto
According to ZachXBT, the suspected attacker moved funds through Ethereum, instant cryptocurrency exchanges, and cross-chain bridges. Some assets were also converted into Monero (XMR), a privacy-focused cryptocurrency that makes transaction tracing more difficult.
Bitquery estimated that approximately $78.3 million remained in wallets associated with the suspected attacker as of 13:47 UTC on November 2, while $30.5 million had moved out of the tracked addresses. Only around $3.74 million remained in USDC that Circle could potentially freeze, and Tether had frozen approximately $1.1 million in USDT.
ZachXBT argued that a lack of timely incident disclosure allowed more than $30 million to be laundered that might otherwise have been frozen.
What Happens Next?
The investigation remains ongoing, with the affected organization still unidentified. Authorities and blockchain analysts may be able to trace additional transactions, but recovery will depend on whether assets can be linked to identifiable accounts or frozen before being moved beyond reach.
For now, the incident as many others, highlights the importance of rapid communication between exchanges, stablecoin issuers, investigators, and law enforcement when large-scale crypto thefts are suspected.
