Crypto Whale Loses $27 Million in Strange Multisig Wallet Hack

Multisig wallets are among the most secure crypto wallets, but it seems criminals have found ways to beat the security. A hacker has stolen over $27 million from one of such multisig wallets and is managing it in a rather strange way.

Blockchain security firm PeckShield raised the alarm about the hack in which the attacker gained access due to a private key compromise. According to the firm, the hacker has already moved $12.6 million of the stolen funds through crypto mixing platform TornadoCash.

The wallet currently managed by the hacker is also said to still hold about $2M in liquid assets, and the victim’s maintained leveraged long position on Aave with $25M ETH supplied against $12.3M DAI borrowed. 

Increasingly Sophisticated Hacks Taking Center Stage

Crypto hacks are very common and have been a part of the industry from inception. Every year, billions are stolen through crypto scams and hacks, and 2025 is no exception. According to a report by blockchain analysis platform Chainalysis, North Korean hackers alone stole $2.02 billion in cryptocurrency in 2025, a 51% year-over-year increase.

This is despite fewer attacks, since the attacks are getting sophisticated and competent in stealing funds. They are said to operate either by embedding IT workers inside crypto services or using sophisticated impersonation tactics targeting executives. It could be this kind of sophisticated method the hacker used to get to the whale.

Multisig wallets use multiple signatures as the name implies. Such a wallet requires multiple signatures from different persons or devices to operate, ensuring that it is highly secure. However because of the high sophistication of hacks, this seems to be failing.

Experts say the hack may have been due to the private keys getting leaked during the multisig creation, and it is also possible that the victim trusted a threat actor to assist with the multisig setup, who later used the keys to drain the wallet.

Crypto Hackers Running Rampant

In times of crypto bull markets such as in the last few months, crypto hacks and thefts seem to increase significantly and that was the case. Several attempts have been made to steal crypto assets with different approaches. 

Some hackers have hacked the Chinese Pancakeswap X account to promote a crypto scam. While different to a wallet hack, such ones promote fake crypto tokens and trick users into sending them money in exchange for non-existent tokens.

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