Crypto Hacker Moves $330.7M in BTC via XMR, Manipulates Derivatives Markets

This Monday, the cryptocurrency community was shaken by an unusual transfer of over 3,520 BTC, valued at approximately $330.7 million. The transaction involved the XMR token, a privacy-focused cryptocurrency often associated with illicit activities. Blockchain investigator ZachXBT suggested that this significant transfer was likely connected to a recent monero hack. The unusual route chosen for laundering such a large sum raised eyebrows among experts, indicating a calculated market manipulation strategy rather than a simple heist.

The choice of the XMR token for this large transfer is noteworthy. Typically, hackers prefer stablecoins like USDT or ETH due to their liquidity and ease of conversion. However, Monero's privacy features, which obscure both the sender and receiver, make tracing nearly impossible. Despite its low liquidity, which can cause significant slippage and increase risk, the hacker opted for Monero, prioritizing anonymity over efficiency.

The transfer coincided with abnormal activity in crypto derivatives markets, adding another layer of complexity to the case. Analysts suspect that the attacker may have manipulated the XMR price by initiating spot purchases, only to profit from long positions in derivatives. This method resembles previous manipulations seen in smaller tokens and echoes the notorious Mango Markets exploit of 2022. The Monero hack appears to be more than just a concealment tactic; it involves gaming the system at multiple levels.

The method used by this crypto hacker follows a familiar playbook in decentralized finance (DeFi). The strategy involves manipulating the price of an illiquid asset to profit from positions in more liquid derivative markets. This approach was previously seen in the JELLY token on HyperLiquid and the $114 million Mango Markets hack, which led to the conviction of Avi Eisenberg in 2024. In both cases, false pricing was used to generate massive profits. The new case involving the XMR token fits this pattern, highlighting the ongoing challenge of balancing privacy and regulation in the cryptocurrency world.

Using Monero in this manner is a bold move due to its limited liquidity. Exchanges do not offer deep Monero markets, so moving large amounts can result in price changes before trades are completed, a risk known as slippage. The XMR price can spike or crash with minimal trading volume, making laundering $330 million especially risky. However, the hacker may have relied on this very instability to create pricing pressure in the derivatives market, resulting in a well-timed, albeit suspicious, opportunity to profit from synthetic trading.

The future of the XMR token remains uncertain. While Monero's privacy features make it attractive for legitimate privacy advocates, its frequent association with cybercrime and laundering cases could bring regulatory pressure. The Monero hack case is a clear example of how privacy coins can be exploited when used creatively by a crypto hacker. Whether it’s the XMR price manipulation or the growing number of similar schemes, it’s clear that blockchain transparency is being tested. The balance between privacy and regulation might soon tip, and Monero could be at the center of that shift.