In a remarkable achievement, pseudonymous on-chain investigator ZachXBT has managed to recover the majority of funds lost in the theft of a rare DeGods non-fungible token (NFT). The original holder of DeGods #3251 NFT fell victim to a phishing scam in May 2023, resulting in the loss of the NFT which was sold for 99 Ethereum (ETH), equivalent to approximately $177,000 at the time.
Nine-Month Investigation Yields Results
After a rigorous nine-month investigation, ZachXBT informed his 505,200 followers on X about the successful recovery of most of the stolen funds, which have now been returned to the victim. The investigation showcased ZachXBT’s dedication and expertise in tracking down the proceeds of crypto crimes, despite the challenges posed by the complexity of these scams and the use of crypto mixers to obscure the trail of stolen assets.
The Process of Recovery
The recovery process initiated when the victim reached out to ZachXBT for assistance after realizing his wallet had been compromised. ZachXBT’s methodical approach involved detailed analysis and tracking of the stolen funds’ movement, which he often illustrates through simple diagrams to educate his followers on the mechanics of phishing scams and the flow of illicit funds through the blockchain.
Facing Challenges and Criticism
Despite the positive outcome of this case, ZachXBT has faced criticism from individuals frustrated with their inability to recover stolen cryptocurrencies. In response to negative replies and the immense pressure of providing such intricate services free of charge, ZachXBT expressed his decision to soon cease all public goods work related to tracking and recovering stolen crypto assets.
Impact Beyond Individual Cases
ZachXBT’s contributions to the crypto community extend beyond individual recovery efforts. His investigative work has aided not only private individuals but also national authorities in understanding and combating crypto-related crimes. Notably, French authorities have utilized ZachXBT’s research in their efforts to apprehend fraudsters responsible for a $2.5 million NFT theft, as reported in October 2022.
This successful recovery underscores the vital role of skilled on-chain investigators like ZachXBT in addressing the challenges posed by crypto theft and scams, offering a glimmer of hope to victims and reinforcing the importance of vigilance and security in the digital asset space.
