ZachXBT, a pseudonymous blockchain researcher with a substantial following, recently announced the successful recovery of a significant portion of funds from a stolen non-fungible token (NFT). In a social media post on February 24, ZachXBT shared the outcome of his nine-month investigation into the theft of the DeGods #3251 NFT, revealing that a majority of the funds had been returned to the victim.
The NFT in question, sold for 99 Ether (ETH) at the time, equivalent to approximately $177,000, became the subject of ZachXBT’s investigation after the victim’s wallet was discovered to have been emptied. ZachXBT, known for conducting blockchain investigations with varying durations based on complexity, utilized diagrams to illustrate phishing scams and track fund movements, including those through crypto mixers.
Receiving a message from the victim in May 2023, ZachXBT embarked on the lengthy process of recovering the stolen funds. Despite the complexity involved, he expressed satisfaction in sharing success stories of fund recovery, highlighting that while time-consuming, such endeavors are achievable.
ZachXBT also mentioned his intention to conclude his pro bono blockchain investigation work soon, citing frustration from users who expected assistance in recovering stolen crypto despite his clear stance on offering his services free of charge.
Phishing attacks targeting cryptocurrency users continue to rise, with various deceptive tactics employed. Approval phishing scams, where users are deceived into approving malicious blockchain transactions, are among the prevalent tactics. The U.S. Securities and Exchange Commission (SEC) has actively been combating phishing scams, educating investors on recognizing and avoiding fraudulent schemes. ZachXBT’s success in recovering stolen NFT funds adds to the ongoing efforts to address security concerns in the cryptocurrency space.
