2025-12-18 08:20:38

I recently came across a rather shocking security incident. A large holder's multi-signature wallet was drained of $27.3 million after private key leakage, and the situation is still ongoing, with the risk still high.

Here's what happened: the attacker has already laundered about $12.6 million through a mixing platform and still holds over $2 million in liquid assets. Most critically, they now control the victim's multi-signature wallet. This wallet has a high leverage position on a lending protocol — providing approximately $25 million worth of ETH as collateral and borrowing $12.3 million in DAI.

On-chain data shows the attacker has repeatedly transferred large amounts of ETH to a mixing platform, clearly laundering the funds. This gives us a very direct lesson — the health factor of this victim's lending position is actually quite low. If ETH prices fluctuate slightly, they could face liquidation at any moment. When that happens, the losses could be even more severe.

This incident offers us several key takeaways:

**First**, private key leakage is truly a fundamental problem. Multi-signature wallets can mitigate risks, but they also risk being compromised if a single private key is breached — this part cannot be fully protected. So, key management must never be taken lightly.

**Second**, basic practices like using hardware wallets and rotating signers regularly must be properly implemented. Never keep private keys connected to the internet.

**Finally**, when engaging in leveraged operations, always keep an eye on the health factor, especially during volatile market conditions. Excessive leverage amplifies existing risks — a single fluctuation can be deadly.

In short, in the crypto world, there are no small matters; security always comes first.

ETH1,07%

DAI0,01%

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WalletDetective

· 2025-12-21 07:47

Another private key leak, it's unbelievable. Nowadays, even multi-signatures are not safe. --- 27.3 million dollars just disappeared like that, ridiculous. The key point is that it's leveraged in the lending protocol. --- You really can't skimp on hardware wallets, otherwise, just wait to be played for suckers. --- With such a low health factor, still daring to play with leverage, this is gambling with one's life. --- Mixing coins for money laundering, the on-chain data is crystal clear, it's impossible to guard against. --- How can there still be people putting private keys on networked devices? Isn't this suicide? --- If ETH drops a little, liquidation will come, and at that time, rekt will be even worse. It's really a bit tragic. --- Why do some people never learn their lesson? Safety first, this saying has been heard for so many years. --- Offering 25 million ETH as collateral to borrow 12.3 million DAI, this leverage ratio is a bit fierce. --- If a single private key is compromised, the multi-signature becomes useless. This is the Achilles' heel of multi-signatures.

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ColdWalletGuardian

· 2025-12-19 05:09

Damn, once again private key leakage, it's truly unpredictable and unavoidable. Another big loss holder, multi-signature can't save the single private key being exposed. Those who play with leverage deserve it; with such low health factors, they still dare to sleep soundly. Hardware wallets are really not optional; they are a must-have, okay? $27.3 million gone just like that, this is the most terrifying part. Mixer platforms run so fast, you can't even escape on-chain. I just want to know what this guy's mindset is right now; can he still sleep peacefully? Liquidate, liquidate, liquidate—any slight market movement and it's all over. Key management can't be entrusted to anyone, including oneself sometimes. Honestly, these incidents are a reminder that greed can really be deadly.

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rug_connoisseur

· 2025-12-18 08:50

Damn, $27.3 million is gone just like that? How careless does this guy have to be? No matter how many signatures, it can't save this kind of rookie mistake with private keys. Hardware wallets are really non-negotiable. People who keep private keys online every day are really... High leverage is just a gambler's mentality. ETH gets shaken slightly and it's liquidated. Serves them right. The mixing platform hasn't even held up yet, and the subsequent liquidations will be even more disastrous. This incident has definitely sounded the alarm for big players. If your key management isn't in place, don't touch leverage. Actually, multi-signature is just a facade; the key still depends on yourself—don't be stupid. With lessons from over $20 million, how are some people still falling backwards... This time, the rotating signers really need to take it seriously. Don't always think you won't get caught. Leverage is truly a double-edged sword. When the market shakes, the true nature is revealed. The liquidation risk is right there. Having such a low health factor is basically suicide. Looking at this guy's position structure, there were big problems from the start.

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MEVEye

· 2025-12-18 08:49

27 million USD is gone just like that, it hurts so much. Multi-signature can't even prevent insiders, that's the most terrifying part. --- Hardware wallets really can't be skipped. Can you afford to be drained once and pay the price? --- With such a low health factor, daring to play like this, serves you right for liquidation. --- It's so easy for mixing platforms to launder money, no wonder this guy dares to be so blatant. --- Just look at this case, there is no substitute for private key management, you can only be diligent yourself. --- The higher the leverage, the shorter the life, this is a bloody lesson. --- Is multi-signature just a gimmick? Losing one private key means losing everything, what are you talking about? --- His current situation is like walking a tightrope, if ETH drops sharply, it's game over. --- This is called karma, not doing basic security measures and still daring to play with such high leverage. --- 12.6 million has already been laundered, the remaining ones can't run either, just see what can be uncovered on-chain.

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MidnightSnapHunter

· 2025-12-18 08:47

It's the old trick of private key leaks again. Multi-signature is not a cure-all; it depends on who holds the keys. This guy is playing with leverage too aggressively. His health factor is so low, yet he still dares to sleep. He'll suffer sooner or later. $27.3 million lost, and the mixing platform is still helping with money laundering. Everything on the chain is clear as day. Hardware wallets + cold storage are definitely not nonsense. You need to spend some money to buy this insurance. I'm most afraid of liquidation risk. As soon as the market jitters, it crashes. Things will get even worse then.

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orphaned_block

· 2025-12-18 08:35

Damn, 27.3 million dollars just gone like that. This guy must be really heartbroken. --- Multi-signature can also be broken, which shows that private key management is truly non-negotiable. --- Another case of mixing coins for money laundering. This process is so familiar, it’s all clearly visible on the blockchain. --- With such a low health factor and still playing with leverage, isn’t this just courting death? --- Hardware wallets are really a must; you can't save money by skipping this. --- Using 25 million ETH as collateral to borrow 12.3 million DAI. If ETH drops, it’s an instant liquidation. Who would dare to play like this? --- The key issue is that over 2 million haven’t been washed away yet. How to handle this later? This matter is still far from over. --- Once the private key is leaked, it’s all over. The advantage of multi-signature is gone, it’s so heartbreaking. --- Not even doing the basic practice of rotating signers regularly. No wonder.

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