Due to a compromised mnemonic seed phrase, a Chinese VC loses $42 million in cryptocurrency. Bo Shen’s personal wallet was hacked once more in 2016.
Bo Shen, general partner of the Vitalik Buterin-advised venture capital fund Fenbushi Capital, claimed on Nov. 23 in a new tweet that $42 million had been taken out of his Trust Wallet on Nov. 10.Shen, who experienced childhood in China yet presently lives in Atlanta, says that the assets were his own resources and the adventure doesn’t influence Fenbushi-related substances.
The incident has been reported to the authorities in the area. Lawyers and the FBI have both been involved. Justice and civility will eventually prevail over evil and barbarism. Human society’s inescapable rule is this. It will only take time.”
Later today, the blockchain analytics company SlowMist confirmed the exploit and stated that “mnemonic words compromise” was the reason for the theft. The company also said that 38,233,180 USD Coin (USDC), 1,607 Ether (ETH), 719,760 Tether (USDT), and 4.13 Bitcoin (BTC) were stolen from Shen’s addresses. Later, the stolen money was transferred to the exchanges ChangeNow and SideShift.
“In addition, during our investigation, we confirmed that @boshen1011’s Trust Wallet is the genuine version. There are no security issues with this theft in Trust Wallet itself.”
Shen reiterated his “commitment to blockchain technology and decentralized services” on Twitter, and he thanked followers for their encouraging messages. On December 8, 2016, hackers gained unauthorized access to a database backup from forum.ethereum.org, which led to the last known attack on Bo Shen’s wallets. Shen, an early financial backer in Ethereum and Forecast, had the two tokens depleted from his wallets, which were shipped off a moment trade administration on Poloniex. Since then, some of the funds have been retrieved.