Bitget’s hackers turn to Zcash after $50 million laundering route gets blocked
Bitget hackers moved $3.9M in stolen ZEC to Zcash's shielded pool after NEAR blocked most of a $50M swap attempt. Bitget faces challenges in tracing funds and handling $700M in withdrawals. THORChain continues processing cross-chain liquidity, unlike NEAR. Bitget's reserve ratio is 131% as of Sept. 29, according to the company.
How this was made
The 30-second read
Why it matters
The ZEC transfer reveals adaptation of hackers to privacy tools, raising concerns for regulators and investors in privacy coins.
Market read
New on‑chain evidence of stolen funds moving into Zcash's shielded pool could affect ZEC price and broader privacy‑coin sentiment.
What to watch
Potential future legal actions against Bitget and the possibility of law‑enforcement tracing could later boost confidence in ZEC.
Background
Bitget suffered a $387.5 million hack; attackers are shifting stolen assets to Zcash after other routes were blocked.
Ticker impact
About $4 million (≈2,746 ZEC) was moved into Zcash's Ironwood shielded pool after the Bitget hack, a new on‑chain flow first reported in this article.
likely downward pressure as market reacts to illicit inflow and potential regulatory scrutiny
Large, newly‑revealed transfer to a privacy pool typically depresses price due to fear of crackdown and reduced liquidity.
Market effects
Highlights growing regulatory pressure on privacy‑focused cryptocurrencies and may affect other privacy coins.
Primarily impacts crypto markets globally; no direct regional equity effect.
Signals heightened scrutiny of cross‑chain hacks, potentially influencing broader crypto risk sentiment.
Counterpoint
Some traders may view the inflow as a sign of strong demand for privacy features, supporting a short‑term price rally.
Key entities
- exchangeBitget
Crypto exchange that was hacked, now facing withdrawal surge.
- cryptocurrencyZcash
Privacy‑focused coin receiving illicit funds.
