Monero’s price surged 14.5% after a significant Bitcoin heist involving 3,520 stolen Bitcoins. This mysterious rise is tied to transfers that seemingly aimed to launder the funds through Monero, a cryptocurrency known for its privacy. The unusual activity raises concerns over its use in illicit transactions and its viability as a safe investment.
On Monday morning, the privacy-focused cryptocurrency Monero (XMR) experienced a surge of around 14.5%, raising eyebrows among market watchers. As of 12:45 p.m. ET, this spike in value coincided with unsettling reports involving a substantial heist of Bitcoin (BTC).
The sudden increase in Monero’s price began late Sunday night, but it didn’t align with typical triggers like an influx of new investors, trending memes on social platforms, or coverage in major news outlets. Experts were puzzled until the crypto security analyst ZachXBT uncovered alarming movements on both Bitcoin and Monero’s blockchains.
In total, 3,520 Bitcoins—worth about $330 million—were transferred from one account to another. While this could have been a routine transaction between major holders, subsequent actions raised suspicions. The Bitcoins were promptly redistributed to six separate Monero accounts, rendering the trail of funds virtually untraceable, thanks to Monero’s inherent privacy features.
This pattern suggests potential money laundering on a grand scale, with the stolen Bitcoins cleverly concealed using Monero. The implications are concerning, given that Monero is often associated with less than desirable activities.
Moreover, pushing such a large sum through the lightly traded Monero market raises eyebrows. Just a day before, Monero’s trading volume was a modest $67 million, so moving $300 million in a single go would unmistakably inflate the price, impacting transaction costs significantly.
The costs associated with these transactions hint at possible illicit motives behind these moves. Why would someone willingly absorb a 15% fee unless they urgently needed to remain anonymous? Initially, Monero’s privacy features captivated me, but incidents like this, coupled with its links to malware schemes, have made me reconsider.
With that in mind, I no longer see Monero as a trustworthy investment. Instead, it increasingly resembles a tool for those looking to mask their dubious financial activities, which is something that should not form the foundation of any responsible investment portfolio.
