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yesterday

Whale’s Misconfigured Ethereum Multisig Hacked, $27 Million Drained

A private key leak during setup let the attacker become the sole signer, leaving a leveraged Aave position exposed.

Overview

  • PeckShield reports roughly $27.3 million was siphoned from the wallet, with about $12.6 million (around 4,100 ETH) laundered through Tornado Cash.
  • The multisig was configured as a 1-of-1, so one key could authorize transactions, and the attacker seized control within minutes of its Nov. 4 creation.
  • The attacker still controls assets including ETH, WETH, OKB, LEO, and FET, with around $2 million in liquid tokens visible on-chain.
  • The compromised wallet also holds a large Aave position, with on-chain data indicating a health factor near 1.68 that could invite liquidation if prices move unfavorably.
  • Investigators are probing the precise failure vector, and some forensic estimates suggest total losses could be higher, potentially approaching $40 million.