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Investigator Traces $28M Bittensor Theft to Former Employee

ZachXBT's investigation into the 2024 Bittensor theft utilized blockchain data, privacy flows, and bridge transaction records, identifying a former employee as the suspect.

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Summary

ZachXBT uncovered a $28 million theft from 32 Bittensor ($TAO) holders between May and July 2024. The attack involved a PyPi supply chain exploit, followed by funds being funneled through Ethereum and Railgun privacy protocols before being converted to Monero. Transaction tracing linked the activity to a former employee, earning ZachXBT a bounty for his white-hat investigation.

Terms & Concepts
  • On-chain transaction data: Blockchain-recorded data showing all transactions, enabling traceability of asset movements.
  • Railgun privacy flows: A privacy protocol enabling shielded blockchain transactions that obscure sender, receiver, and amount details.
  • NFT wash trades: Artificial trading of NFTs between controlled accounts to simulate market activity or obscure fund movements.