Key Notes
- ZachXBT shared that a US crypto user has fallen victim to a scam that left his wallet with a $3 million hole.
- The hacker has transferred the funds through bridges and laundered them on OTC venues adjacent to Huione.
- Crypto scams are growing, with the US government and authorities devising crackdown models.
Another crypto hacker is on a rampage and has now stolen $3 million in digital assets from a citizen of the United States.
According to onchain investigator ZachXBT, the bad actor has swapped the siphoned funds via Bridgers and went as far as utilizing Over-the-Counter (OTC) venues tied to Huione to launder the assets.
This further underscores the epidemic of hackers and cybercriminals in the crypto space.
Crypto Hacker Utilizes Huione-linked OTCs to Launder Funds
Recently, a video surfaced on YouTube featuring a US crypto user who claimed that he had lost 1.2 million XRP XRP $2.46 24h volatility: 2.3% Market cap: $147.43 B Vol. 24h: $3.46 B , from his Ellipal wallet.
Based on the current $2.46 price of the coin, the siphoned stash is valued at approximately $2.95 million, but was roughly $3.05 million at the time of the incident.
In the victim’s words, “That was our whole retirement for my wife and I.”
1/ A video went viral on YT this week after a US based victim lost $3.05M (1.2M XRP) from their Ellipal wallet.
Here’s the tracing of where the stolen funds ended up and the biggest takeaways for similar thefts. pic.twitter.com/Gyw0OWjts4
— ZachXBT (@zachxbt) October 19, 2025
ZachXBT has successfully identified the hacker’s address and confirmed that the stolen funds have gone through bridges and ultimately been laundered to OTC venues adjacent to Huione. To substantiate this claim, the sleuth mapped more than 120 Ripple to Tron TRX $0.32 24h volatility: 0.6% Market cap: $30.41 B Vol. 24h: $603.40 M swaps via bridges on October 12. Per the findings, the funds did not consolidate on Tron before being dispersed to Huione-linked OTCs until October 15.
In the past year, Cambodian-based Huione and its associated multi-billion dollar marketplace have popped up in conversations related to crypto hacks and laundering.
Most of their operations have been identified in Southeast Asia. Around July 2024, Elliptic slammed Huione Guarantee with some serious money laundering allegations.
While the platform may not generally be engaged in illegal activities, Elliptic noted that Huione Guarantee has somehow turned into a hub for criminal activities.
It was not a surprise when authorities in Cambodia issued a directive to block 102 websites in the region by December of the same year.
Chinese Businessman Accused of $14 Billion Fraud
Globally, the authorities and crypto issuers are rising to the increasing demand for more security for crypto users.
A week ago, the United States filed a civil forfeiture complaint seeking the seizure of 127,271 Bitcoin BTC $110 425 24h volatility: 1.0% Market cap: $2.20 T Vol. 24h: $60.01 B linked to Chinese businessman Chen Zhi.
The assets are currently worth about $14 billion, with the flagship cryptocurrency trading at $110,829.78.
US authorities claim that Chen orchestrated one of the largest-ever global pig-butchering and investment fraud operations.
