What Happened to Monero? Looking at ZachXBT's Findings

2025-04-29

The cryptocurrency world was shaken recently as Monero (XMR) — one of the leading privacy coins — experienced a dramatic price surge following the suspected laundering of $330 million in stolen Bitcoin.

On-chain investigator ZachXBT was quick to highlight the suspicious transactions, sparking serious discussion about Monero’s role in illicit finance.

In this article, we will break down what happened, explore ZachXBT’s findings, and examine the broader implications for Monero and privacy coins at large.

Monero Likely Pumped 50% Due to Suspected $330M Bitcoin Theft

On April 28, 2025, ZachXBT, a well-known on-chain sleuth, reported that a suspicious transfer involving 3,520 Bitcoin — valued at approximately $330.7 million — had taken place. The stolen funds were moved from a potential victim’s wallet to a new address.

Shortly after the transfer, the Bitcoin was rapidly laundered through more than six instant exchanges. The attackers swapped the BTC into Monero (XMR), a privacy-focused cryptocurrency designed to offer anonymous transactions.

This massive conversion caused a 50% price spike in Monero, sending it soaring to an intraday high of $339, according to CoinMarketCap.

Although XMR later settled slightly, trading at around $289, the token remained up about 25% over the previous 24 hours — a major move for a coin often considered more stable than high-volatility altcoins.

Who Was Behind the Attack?

Given the size and sophistication of the operation, some initially speculated that North Korea’s infamous Lazarus Group could have been involved.

However, ZachXBT quickly dismissed this theory, suggesting it was “highly probable it’s not” North Korea. Instead, he pointed toward independent hackers likely operating outside of nation-state sponsorship.

This points to a trend where highly skilled individuals — not just organized cybercriminal groups or state-backed entities — are pulling off large-scale crypto thefts.

Why Monero Was the Laundering Tool of Choice

Monero’s core appeal lies in its superior privacy features. Unlike Bitcoin or Ethereum, where transaction histories are publicly viewable, Monero obscures transaction amounts, origins, and destinations using technologies like ring signatures and stealth addresses.

However, privacy coins also face notable challenges:

Reduced Liquidity: As highlighted by blockchain analytics firm Chainalysis, privacy coins like Monero are becoming harder to trade due to major exchanges delisting them.
Limited Acceptance: Although Monero has seen some retail adoption (such as Spar supermarkets in Switzerland accepting XMR for payments), its real-world usability still lags behind more mainstream cryptocurrencies.
Traceability Concerns: A leaked Chainalysis video in 2024 claimed that even Monero transactions could sometimes be traced, particularly through so-called “malicious nodes” that gather network data over time.

Despite these limitations, Monero’s anonymity features remain attractive for illicit activity — and for legitimate users who prioritize privacy.

Monero's Growing Retail Adoption Amid Controversy

Interestingly, the laundering event coincides with growing retail acceptance for Monero. In Switzerland, two Spar supermarket locations now accept XMR for purchases, thanks to partnerships with DFX Swiss and OpenCryptoPay.

A user even posted online about buying organic cacao using Monero at a Spar store in Kreuzlingen. This represents an important milestone for the privacy coin, showing that despite regulatory hurdles and controversy, real-world utility for Monero is expanding.

Meanwhile, major crypto exchanges like Kraken have announced plans to end Monero support in the European Economic Area, reflecting ongoing regulatory pressure.

What’s Next for Monero?

The incident flagged by ZachXBT brings Monero back into the spotlight — for better or worse. Moving forward, Monero’s future will likely be shaped by:

Regulatory Responses: Authorities may increase pressure on privacy coins, making it harder to trade Monero legally.
Technological Improvements: Continued efforts to strengthen Monero’s privacy and scalability could help maintain user trust.
Retail Adoption: Wider acceptance by merchants could soften regulatory risks by legitimizing Monero as a mainstream payment option.

Regardless, Monero's core value proposition — privacy — ensures it will continue to be a polarizing but vital part of the cryptocurrency landscape.

FAQ

What caused Monero's recent 50% price surge?

The surge was triggered by hackers laundering approximately $330 million in stolen Bitcoin into Monero, creating a sudden spike in demand for XMR.

Who discovered the suspicious Bitcoin theft?

The suspicious activity was flagged by on-chain investigator ZachXBT, who closely monitors blockchain transactions and reported the laundering process in real time.

Was North Korea involved in the Monero-related theft?

No, according to ZachXBT, it is highly unlikely that North Korea’s Lazarus Group was involved. Independent hackers are the more probable culprits.

Is Monero completely untraceable?

While Monero offers strong privacy protections, a leaked Chainalysis video in 2024 suggested that some transactions might be traceable through specialized techniques, though this remains a subject of debate.