Bahrain-based cryptocurrency exchange Rain has suffered a security breach that led to the loss of at least $14.8 million. The incident was uncovered by blockchain investigator ZachXBT, who claimed to have noticed “suspicious outflows” from the exchange’s BTC, ETH, SOL, and XRP wallets on April 29.
Following the exploit, the yet-to-be-identified bad actors quickly diverted the stolen funds to various wallets containing 137.9 BTC and 1,881 ETH. Interestingly, however, the funds have remained inactive since the exploit took place. ZachXBT noted in a Telegram part statement:
There's no Call To Action with the ID #3.“Funds were quickly transferred to instant exchanges and swapped for BTC and ETH.”
In addition to the security breach, Rain’s “pro” version, an advanced trading platform, has also been experiencing intermittent downtime since May 5. That is according to information available on the exchange’s official website. As expected, this has added to the frustration of Rain’s users, many of whom are now expressing growing concerns over the safety of their assets.
Multi-Million Dollar Loss Cast a Shadow of Doubt Over Rain Crypto Exchange
Just last year, Rain obtained a license to operate as a virtual asset brokerage and custody service provider in the United Arab Emirates. The license immediately positioned the exchange as one of the major players in the region’s fast-growing crypto market.
With the recent turn of events, however, especially the exploit, questions are now being raised about Rain’s security measures and protocols.
There's no Call To Action with the ID #3.For what it’s worth, though, Rain’s security breach is one of many similar incidents that continue to ravage the crypto industry. In 2023, investors reportedly lost a total of roughly $2 billion to hacks and exploits. That is not to mention the over $333 million that have also been reportedly stolen in the first quarter of this year.
As of publication, Rain was yet to officially acknowledge the security breach or issue any statement regarding it. Although investigation efforts may be ongoing, the loud silence on Rain’s part has further fueled speculation and uncertainty among users of the platform.
