- Cryptocurrency platform Moby lost $2.5 million in assets due to a private key breach on the Arbitrum network.
- Security researcher Tony Ke recovered $1.5 million in USDC and returned it to the project owners.
- The attacker exploited an emergency withdrawal function to steal 207 WETH and 3.7 WBTC.
- Total cryptocurrency losses from hacks and Scams reached $3 billion in 2024, up 15% from 2023.
- The incident represents the first major cryptocurrency security breach of 2025.
A private key compromise at decentralized finance options platform Moby resulted in a $2.5 million loss, marking 2025’s first major cryptocurrency security incident. Security researcher Tony Ke of Solayer Labs successfully recovered and returned $1.5 million of the stolen funds.
Anatomy of the Attack
According to blockchain security firm Beosin, the attacker gained access to a private key and modified a proxy contract to activate an emergency withdrawal function. This manipulation enabled the theft of 207 WETH ($687,000) and 3.7 WBTC ($350,000). The attacker subsequently converted these assets to ETH and transferred them across the Ethereum network.
White Hat Intervention
Tony Ke‘s MEV bot – a specialized program that identifies profitable transaction opportunities – detected a vulnerability in the attacker’s modified contract. The bot executed a counter-operation, securing $1.5 million in USDC. Ke reported missing the remaining assets by just 30 seconds.
Rising Security Concerns
Security firm Peckshield reports cryptocurrency-related losses reached $3 billion in 2024, representing a 15% increase from 2023. Notable incidents included Radiant Capital‘s $50 million multisig breach and Delta Prime‘s double exploitation resulting in $10 million in losses. The Ronin network experienced its third bridge attack, losing $11 million, following its previous $600 million breach in 2022.
Moby‘s team confirmed the incident resulted from private key exposure rather than smart contract vulnerabilities, and committed to compensating affected liquidity providers and traders for their losses.
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