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Trader offers 10% bounty after claiming violent $24M crypto robbery

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Trader offers 10% bounty after claiming violent $24M crypto robbery

A cryptocurrency holder has claimed that attackers stole roughly $24 million in a crypto robbery following a violent assault, with blockchain security analysts now tracking the movement of the funds on-chain.

Summary

  • A crypto user known as “Silly Tuna” claims attackers used violence and threats to steal roughly $24 million in digital assets.
  • Blockchain security firm PeckShield said the funds were drained in an address poisoning attack and partially moved to staging wallets.
  • Around $20 million in DAI is reportedly sitting in two wallets, while small portions have already been bridged to Arbitrum.

$24M crypto robbery linked to address poisoning

In a series of posts on X, a user operating under the handle “Silly Tuna” alleged that the theft occurred during a physical attack that involved weapons and threats of kidnapping and sexual violence. The user said police have been contacted and described the incident as a “violent assault and theft,” adding that the attackers targeted their crypto holdings.

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“Still have limbs, phew,” the user wrote, claiming they were held down while attackers threatened them with axes and forced the transfer of funds.

The victim said the stolen assets were moved to an Ethereum wallet beginning with 0x6fe0…0322 and offered a 10% bounty on any recovered funds. The user also called on blockchain investigators to help trace the transactions.

Blockchain security firm PeckShield later reported that an address linked to the victim had been drained of approximately $24 million worth of aEthUSDC, describing the incident as an address poisoning attack.

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According to the firm, about $20 million in DAI linked to the exploit is currently sitting in two attacker-controlled staging wallets, each holding roughly $10 million. These wallets have not yet been mixed, suggesting the funds remain traceable for now.

PeckShield also said the attacker has begun bridging small amounts of the stolen assets to the layer-2 network Arbitrum, a move often used by attackers attempting to fragment or obscure transaction trails.

The incident highlights the growing risk of physical attacks targeting cryptocurrency holders, sometimes referred to as “wrench attacks,” where criminals use coercion or violence to force victims to hand over private keys or execute transfers.

It remains unclear whether any of the stolen funds have been recovered at press time.

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Crypto World

Morgan Stanley Sets Bitcoin ETF Fee at Ultra-Low 0.14%

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Morgan Stanley Sets Bitcoin ETF Fee at Ultra-Low 0.14%

Investment bank Morgan Stanley is seeking to launch its spot Bitcoin exchange-traded fund at a 0.14% fee, which would make it the cheapest in the US market and potentially force rivals to cut fees to stay competitive.

The 0.14% fee, proposed in Morgan Stanley’s latest S-1 registration statement on Friday, would be one basis point below the Grayscale Bitcoin Mini Trust ETF (BTC), currently the cheapest in the US market, and 11 basis points below the BlackRock-issued iShares Bitcoin Trust ETF (IBIT).

“Big move here. They are not messing around,” Bloomberg ETF analyst James Seyffart said, predicting that the Morgan Stanley Bitcoin Trust (MSBT) is “likely to launch in early April.”

Source: James Seyffart

Fellow Bloomberg ETF analyst Eric Balchunas said the low fee means that none of Morgan Stanley’s roughly 16,000 financial advisors — which manage $6.2 trillion in client assets — would feel conflicted in recommending the product to its clients.

Given that spot Bitcoin ETFs track the price movements of Bitcoin (BTC), Morgan Stanley’s ultra-low fee could spark a fresh fee war in the $83 billion market, putting immediate pressure on rivals to cut costs or risk losing assets.

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Regulatory approval would make Morgan Stanley the first bank to issue a spot Bitcoin ETF, expanding access to Bitcoin exposure for millions of its high-net-worth clients.

“They are the ultimate gatekeepers of rich boomer money,” Balchunas added.

Morgan Stanley previously selected Coinbase and Bank of New York Mellon as the proposed custodians for its Bitcoin ETF.

Morgan Stanley seeking suite of crypto ETFs, banking charter

Morgan Stanley, previously one of the more crypto-hesitant Wall Street firms, filed for the spot Bitcoin ETF in the first week of January, along with a Solana (SOL) ETF.

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Related: Bitcoin traders see 53% odds of sub-$66K BTC by April 24 

It then filed papers for a staked Ether (ETH) ETF later that week, and by the end of the month, the bank appointed one of Morgan Stanley’s longest-standing executives, Amy Oldenburg, to lead its digital asset team.

Source: James Seyffart

Morgan Stanley also applied for a national trust banking charter on Feb. 18, seeking to custody certain digital assets and execute purchases, sales and swaps for clients in addition to staking services.

In October, before the investment bank adopted its institutional crypto strategy, it recommended a 2% to 4% allocation to crypto portfolios for investors. It also allowed its financial advisors to recommend crypto funds to clients with individual retirement accounts (IRAs) and 401(k)s.

Magazine: Bitcoin may face hard fork over any attempt to freeze Satoshi’s coins

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