Hacker steals $42 million in cryptocurrency from Fenbushi Capital co-founder Bo Shen

Fenbushi Capital partner-founder Bo Shen said that an unknown actor withdrew all assets worth $42 million from his Ethereum wallet.

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

The incident occurred on November 10, but the investor disclosed it almost two weeks later. The majority of stolen assets were USD Coin (USDC) worth $38 million.

Among the stolen assets were stablecoins USDT from Tether, the UNI token from the Uniswap platform, and lesser-known altcoins such as Reputation (REP), Liquity (LQTY) and Efforce (WOZX).

“The stolen assets are personal funds and have no relation to Fenbushi-related entities,” Bo Shen assured.

He reported the incident to law enforcement authorities, including FBI.

“Civilization and justice will ultimately prevail over barbarism and evil. Such is the iron law of human society. It is only a matter of time,” the investor said.

Beosin, a blockchain cybersecurity company, confirmed the exploit. According to experts, unauthorized transactions became possible due to private key compromise.

Tx：0xf6ff8f672e41b8cfafb20881f792022f6573bd9fbf4f00acaeea97bbc2f6e4f7
This was caused by private key compromise as the transaction was initiated from the 0x6be8…5e894 address.
The total loss is ~$42M. https://t.co/3UepSxENs3 pic.twitter.com/XeTHG85E2l

— Beosin Alert (@BeosinAlert) November 23, 2022

The hacker moved assets to two addresses and swapped most of the cryptocurrency for DAI from MakerDAO.

Shen and Fen Xiao founded Fenbushi in 2015. The firm’s adviser is Ethereum co-founder Vitalik Buterin.

The company invested in a number of well-known crypto-industry players, including Abra, ConsenSys, Circle, Parity, Messari and others.

In January, Fenbushi participated in a $50 million investment round for The Graph, the startup developing the protocol of the same name.

In May, the venture firm backed the Nym project, which raised $300 million for the ecosystem development fund.

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