Bo Shen, partner of Fenbushi Capital, a blockchain-focused venture capital firm founded in Shanghai, announced that he lost about $42 million as a result of his cryptocurrency wallet being hacked.
According to blockchain security firm SlowMist, cryptocurrencies stolen as a result of the purse’s secret recovery phrases being compromised include USD Coin, Tether, Ether, and Bitcoin. Secret recovery phrases or words are vital to recovering crypto funds on the chain.
The wallet Shen used was Trust Wallet, which was acquired by crypto exchange giant Binance in 2018. Security firm SlowMist tweeted, “Trust Wallet itself has no security issues with this theft.” made the statement.
FBI involved in investigation
The investor also shared that both the FBI and lawyers were involved in the investigation. “Civilization and justice will eventually triumph over barbarism and evil.” Shen tweeted, reporting that the theft took place while he was in New York.
Being among the first Chinese investors in the cryptocurrency space, Shen and Fenbushi have a great reputation. Fenbushi was established in Shanghai in 2015. According to the company’s website, Ethereum co-founder Vitalik Buterin acts as a consultant at the company.
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