$330 Million BTC Transfer Linked to Monero Derivatives Surge
On Monday, over 3,520 BTC (approximately $330.7 million) was suspiciously converted to Monero (XMR), likely linked to a hack, according to blockchain investigator ZachXBT. Key points include:
- Monero provides untraceable transactions but has limited liquidity, increasing slippage risks.
- Using XMR instead of more liquid assets like USDT or ETH raises transaction costs significantly.
- The combined market depth for XMR was low at around $1 million per 2%, contributing to a 45% price surge and potential losses of $66 million due to slippage.
- Open interest in XMR futures and options doubled to $35.1 million, suggesting coordinated trading activity rather than simple laundering.
- A prior case showed similar manipulation tactics with a trader exploiting illiquid exchanges to influence derivative prices.
This incident echoes past manipulations, notably the $114 million exploit on Mango Markets in 2022, leading to significant legal repercussions for the perpetrator.