ZachXBT investigates an alleged $133 million crypto theft involving a French banking group, illustrated with a bank building, cryptocurrency coins, and a digital investigation scene.

ZachXBT Traces $133M Crypto Theft to French Banking Group

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Key insights

  • Loss estimates grew from $106 million to than $133 million after investigators found more withdrawals from exchanges.
  • Asset movements made tracing because the suspected stolen stablecoins were moved into Ether and Monero before being sent to other blockchain networks.
  • The victims identity is still not confirmed even though ZachXBT has pointed to a target while exchanges and Tether say they have frozen some of the related funds.

Crédit Mutuel Arkéa is accused of losing more than $133 million in a cryptocurrency theft after on‑chain investigator ZachXBT named the French banking group as the possible victim on November 4. The claimed losses come from withdrawals from exchange accounts, which raise concerns, about how safe digital assets are and how financial institutions react to large crypto thefts.

ZachXBT identifies the suspected French banking victim

ZachXBT traced the suspicious transactions on multiple cryptocurrencies platforms and connected them with Crédit Mutuel Arkéa. Investigators have not yet determined how the alleged attackers were able to get access to the banking group’s funds, though they are estimated to be about $235 billion in assets.

The investigator originally said that over $106 million was withdrawn suspiciously on Monday. His research led him to a particular European entity that had been hit by a centralized exchange to great losses.

However, after looking at transactions they found another $27 million that was taken out. This finding made the total amount stolen go over $133 million. Showed that the problem was bigger than people thought.

ZachXBT also said that the number they shared might not show all the money that was lost. He suspects over-the-counter transactions could account for additional stolen funds that earlier estimates did not include.

Crédit Mutuel Arkéa has not publicly confirmed its involvement in the incident. Therefore, the bank’s identification remains an allegation rather than an independently verified finding.

Stablecoin withdrawals reveal the money trail

Blockchain analytics firm Bitquery traced suspicious withdrawals involving accounts associated with Kraken, Crypto.com and OKX. The transactions showed how the suspected attackers moved funds through several stages after withdrawing stablecoins.

Approximately $62.98 million in USDC and USDT reportedly converted into 27,553 ETH within around four hours. The speed and volume of these transactions highlighted the challenges exchanges face when monitoring substantial movements across digital asset markets.

The suspected attackers then channeled the money through instant cryptocurrency exchange platforms. Other transactions reported were via WellWallet and Kyrrex and other cross-chain movements were in Monero.

Monero, also known by its ticker symbol XMR, provides privacy features that make it more challenging to trace transactions. Transfers of assets across blockchains can also make it harder to investigate because it can be across several different blockchains and services.

The available evidence establishes a transaction trail, but it does not explain the initial breach. Investigators have not publicly identified whether compromised credentials, insider activity or another security failure enabled the alleged theft.

Key reported figures include the following:

  • Initial estimate—More than $106 million in suspicious withdrawals.
  • Updated estimate—More than $133 million after another $27 million emerged.
  • Stablecoin conversion—Approximately $62.98 million exchanged for 27,553 ETH.
  • Reported banking assets—Approximately $235 billion at Crédit Mutuel Arkéa.

Exchanges restrict funds as investigations continue

The incident prompted responses from cryptocurrency exchanges connected to the suspicious transactions. Kraken restricted accounts associated with the suspected theft and said its systems and customer accounts remained secure.

Crypto.com also blocked funds linked to the activity. Meanwhile, OKX began reviewing the allegations surrounding the transactions.

Tether reportedly froze approximately $1.1 million in USDT associated with the incident. That intervention demonstrates how stablecoin issuers can sometimes restrict specific assets when they identify suspicious activity.

But the freezing of funds only forms part of the recovery process. Investigators will need to track assets on networks, find controlling parties and see if more money is still to be recovered.

ZachXBT also raised concerns about the delay in publicizing and proposed that there was a lot of laundering that went on during the delay. His report shines light on how well financial institutions are working together, as well as between exchanges and law enforcement.However, there is no evidence that the bank made any type of disclosure or that any legal reporting requirements were violated.

Security implications for traditional finance

The alleged theft shows how security problems are getting bigger, for banks that work with cryptocurrency markets. Even though banks follow set rules dealing with coins brings extra work and careful watching.

The case also shows how attackers can take advantage of how cryptocurrency markets are split up. Funds can move between centralized exchanges, conversion services, privacy-focused assets and separate blockchain networks within relatively short periods.

In regards to exchanges, the incident underscores the significance of transaction monitoring and swift communication when suspicious withdrawals occur. There is a potential benefit to coordinated responses to limit transfers before the investigators lose sight of them in multiple services.

The main issue for banks is how the alleged attackers got access to the assets. Observers can’t conclude whether custody controls, account security or something else was responsible for the incident without confirmation of the breach mechanism.

The accusations have additional ramifications for the reputation of Crédit Mutuel Arkéa. But any evaluation of its security practices should be based on proven facts from the bank or appropriate authorities.

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