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Bo Shen, co-founder of venture capital firm Fenbushi Capital, shared via Twitter on Wednesday that his wallet had suffered an attack. A malicious actor carted off assets worth $42 million from the Chinese investor’s personal holdings on November 10.
Hacker Gains Access Via Compromised Seed Phrase
Per the tweet, the stolen funds included 38M USDC. Shen made sure to clarify in his post that the hack was isolated to his own accounts and Fenbushi wallets remained unaffected.
A total of 42M worth of crypto assets, including 38M in USDC were stolen from my personal wallet ending in 894 in the early morning of November 10 EST.
The stolen assets are personal funds and do not affect on Fenbushi related entities.
— Bo Shen (@boshen1011) November 23, 2022
Blockchain security firm SlowMist verified news of the attack and shared a report detailing how it occurred. SlowMist explained that they began their investigation with an on-chain analysis of the stolen assets and the exploiter’s wallet. The probe revealed that the culprit had breached the wallet by compromising its mnemonic words, or seed phrase.
Funds Sent to ChangeNOW and SideShift
As Bo Shen uses a self-custodial wallet Trust Wallet, the firm looked into the wallet itself to ensure it was authentic. The investigation revealed that it was.
Trust Wallet itself has no security issues related to this theft.”
According to SlowMist, Shen lost 8,233,180 $USDC, 1,607 $ETH, 719,760 $USDT, and 4.13 $BTC in the theft. The hacker later transferred the funds to crypto exchanges SideShift and ChangeNOW. The BTC and some of the USDT went to ChangeNow while SideShift received some DAI and USDT.
Bo Shen Contacts Law Enforcement
Interestingly, this is not Bo Shen’s first run-in with bad actors. In 2016, the Fenbushi chief lost about $300k in Augur (REP) after hackers breached his mobile phone and email account. They also made off with an undisclosed amount of ETH.
The hackers at the time transferred the assets to an instant swap service on Poloniex. Fortunately, Shen was able to reclaim some of his assets.
Bo Shen noted that he has contacted law enforcement agencies and brought them aboard the latest case. Indeed, lawyers alongside the Federal Bureau of Investigation were involved in the case. Also, SlowMist confirmed this and encouraged the perpetrators to return the stolen funds as swiftly as possible.
Civilization and justice will eventually prevail over barbarism and evil. This is the iron law of human society. It’s just a matter of time.”