On-chain detective ZachXBT recently unveiled on Telegram that Bahrain-based crypto exchange Rain “likely” fell victim to a ~15 million scam. Four crypto assets in particular were targeted and sent out. They were then transferred and eventually swapped. Elaborating on his finding, the sleuth noted,
“It appears the crypto exchange Rain was likely exploited for $14.8M on April 29, 2024 after their BTC, ETH, SOL, and XRP wallets saw suspicious outflows. Funds were quickly transferred to instant exchanges and swapped for BTC and ETH.”
Rain Strengthens Security
The funds that were stolen were divided between wallets that had a balance of 1881 ETH [worth $5.5 million] and 137.9 BTC [8.6 million]. Rain had not made an official announcement about the exploit before ZachXBT’s revelation. However, once the word started spreading, it clarified,
“We would like to address news circulating about a security incident involving Rain, and let our customers know that the situation has been resolved. We assure you that we have already taken all the necessary steps to address this matter to protect customer funds.”
The team further revealed that as soon as they came to know about the incident, they “isolated the issue and put additional controls to strengthen our security.” In fact, Rain Group has “covered” potential losses resulting from this incident. Customers' funds, in turn, remain protected. The team further asserted that customer and operational activity involving crypto buying, selling, sending, receiving, along with fiat depositing and withdrawals, “remain operational and uninterrupted across all our platforms.”
While Rain’s website and mobile app continue to function properly, a quick glimpse onto the website brought to light that the advanced trading platform - the Pro version - has been experiencing an outage since May 5, bringing down its uptime to 97%.
In July last year, Rain had been granted permission by Abu Dhabi’s Financial Services Regulatory Authority to operate a virtual asset brokerage. The firm was also green-flagged to offer custody services to its clients. The Financial Services Permission [FSP] additionally opened doors for Rain to list additional crypto asset trading pairs.
