Investigators have frozen about $1.2 million as efforts continue to trace funds lost in a wallet breach linked to a seed phrase compromise.
Bo Shen, co-founder of venture capital firm Fenbushi Capital, has offered a 10%–20% bounty to anyone — individual or organization — who makes a substantial contribution to recovering roughly $42 million in digital assets stolen from his personal wallet in a 2022 hack. Shen said onchain investigators ZachXBT and Taylor “Tayvano” Monahan have already helped freeze about $1.2 million in related assets. Shen’s team will distribute rewards once recovery is complete.
Shen first disclosed the theft in November 2022, saying about $42 million had been drained from his personal wallet and that the loss did not affect Fenbushi-related entities. Blockchain security firm SlowMist later attributed the theft to a compromise of Shen’s mnemonic seed phrase.
SlowMist reported the stolen assets included approximately $38.2 million in USDC, 1,607 ETH, nearly 720,000 USDT and 4.13 BTC. These assets were reportedly moved through services including ChangeNow and SideShift.
Shen said the renewed recovery push follows new leads and a clearer picture of how the stolen assets moved. He noted that onchain tracking and security investigation tools were less developed in 2022, limiting tracing across chains and platforms. Recent advances in AI-driven data analysis and onchain forensics, Shen said, have improved investigators’ ability to follow asset flows and identify transaction patterns. He described the effort as a potential test case for how newer tools and coordination methods can support long-running investigations, while cautioning that any recovery remains uncertain.
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