Fenbushi Capital Partner Bo Shen Loses $42M to Hackers

Crypto venture capital heavyweight Bo Shen announced that $42 million has been siphoned from his Ethereum (ETH) wallet.

Bo Shen who is a general partner and founding partner of Shanghai-based blockchain-focused venture capital firm Fenbushi Capital believes that the attack was conducted through a compromise of his crypto wallet recovery phrase.

“A total of 42M worth of crypto assets, including 38M in USDC were stolen from my personal wallet ending in 894 in the early morning of November 10 EST. The stolen assets are personal funds and do not affect Fenbushi related entities,” Shen tweeted.

Several cryptocurrencies were stolen from his personal wallet. Altogether, Shen recorded the loss of USD Coin (USDC), Tether (USDT), Uniswap (UNI), Ether, and Bitcoin (BTC), according to blockchain security firm SlowMist. Most of the loss was in United States dollar-pegged stablecoin USDC up to the tune of $38 million. 

SlowMist Confirms Security Compromise

As stated in his tweet, the incident has been reported to local law enforcement as well as the FBI and legal experts. Bo Shen maintained that “Civilization and justice will eventually prevail over barbarism and evil. This is the iron law of human society. It’s just a matter of time.” 

SlowMist, which is now working together with blockchain security firm Beosin on this case, confirmed the compromise of Bo Shen’s crypto wallet recovery phrase. The security firm has called on the hackers to refund the stolen assets as soon as possible.

“Reason for theft: Mnemonic words compromise. Wallet used at the time of the theft: Trust Wallet Amount: 38,233,180 $USDC + 1,607 $ETH + 719,760 $USDT + 4.13 $BTC,” and “We are working with @boshen1011 to follow up on this theft, and with the FBI and lawyers already involved, we are calling on the hackers to pay back the money ASAP.”

Notably, this is not the first time Shen is suffering from such a digital asset attack. Almost six years ago, hackers attacked his mobile phone and email to steal $300,000 worth of digital assets. FTX Derivatives Exchange which is currently in the middle of a liquidity crunch was also attacked and recently saw a dump of 50,000 ETH by the hacker who utilized the peel chain technique.