Was XMR’s Price Gain Fueled By Scams? Here’s What ZachXBT Has to Say

In the volatile world of cryptocurrency, price movements can be unpredictable, often triggered by a variety of factors. Recently, Monero (XMR), the privacy-centric digital currency, witnessed a remarkable surge—its value spiking by 50%. 

At the heart of this sudden rise lies a concerning narrative: could a social engineering scam have been responsible for driving XMR’s price higher? According to blockchain investigator ZachXBT, the answer may be more complicated than it seems. 

Here’s a breakdown of the situation, including ZachXBT's findings, the role of privacy coins like Monero, and the broader implications for the crypto market.

What is Monero (XMR)?

Monero (XMR) is one of the most well-known privacy-focused cryptocurrencies. Unlike Bitcoin or Ethereum, which offer pseudonymous transactions, Monero ensures that all transactions are completely private. 

It employs advanced cryptographic techniques, such as ring signatures and stealth addresses, to obscure transaction details, making it nearly impossible to trace the flow of funds on its blockchain. 

This unique feature has made Monero a popular choice for those seeking privacy, though it also makes it a frequent target for illicit activities. The question, however, is whether this privacy advantage plays a role in larger market movements—such as price increases fueled by suspicious transactions.

Read Also: What Happened to Monero? Looking at ZachXBT's Findings

Monero Price Overview

In recent months, XMR has seen notable price gains. A particularly sharp increase occurred recently, with the coin rising by 50% over a short period. This price surge was directly tied to an incident in which over 3,500 BTC—worth approximately $330 million—was stolen from a wallet that had remained largely dormant since 2017. 

According to findings from blockchain investigator ZachXBT, the stolen Bitcoin was funneled through several centralized exchanges before being converted into Monero. The sudden influx of such a large amount of crypto into the market, combined with Monero's relatively low liquidity, triggered the dramatic price spike.

The timing of the price movement left many questioning whether the surge was driven by legitimate market factors or whether illicit activities, like the aforementioned scam, were at play. This incident raised crucial concerns about how Monero's privacy features might enable the laundering of stolen assets, potentially leading to price manipulation.

Read Also: Monero Sparks New Interest! Analyzing Its MarketCap Surge After Theft

Factors Affecting XMR’s Price

Several factors came into play regarding XMR’s recent price movement. At the core of the issue is the scam that led to the loss of $330 million in Bitcoin. The elderly U.S. investor at the center of the scam fell victim to a social engineering attack, in which the perpetrators used deceptive methods—likely emails or phone calls—to gain access to the victim's crypto wallet.

After the theft, the stolen funds were quickly moved through at least six centralized exchanges, and subsequently converted into Monero.

Monero’s inherent privacy features made it the ideal choice for laundering the stolen Bitcoin, as the transactions were difficult, if not impossible, to trace. The conversion of such a large amount of Bitcoin into XMR, combined with the limited liquidity in Monero’s markets, led to the rapid price spike. 

x, this surge may have been fueled not by organic market demand, but by the illicit movement of funds.

Was XMR’s Surge Driven By Illicit Activity?

ZachXBT’s investigation into the incident suggests that while the stolen funds did indeed impact the price of XMR, the situation is far from straightforward. The blockchain sleuth emphasized that while the funds moved through centralized exchanges, their conversion into Monero triggered a short-term surge due to liquidity constraints. 

This isn’t the first time that illicit activity has been linked to price manipulation in the cryptocurrency market. XMR, in particular, has faced scrutiny for being the preferred medium of exchange for hackers and cybercriminals due to its privacy-centric nature.

However, ZachXBT did not point the finger at any specific group behind the theft. While some on social media speculated that North Korea’s Lazarus Group could be involved—given their history of stealing cryptocurrency—ZachXBT dismissed this theory. 

Instead, he suggested that independent bad actors, rather than a state-sponsored group, were the most likely culprits. This points to a broader trend of increasing individual and small-scale hacking operations in the crypto space, as opposed to large, coordinated attacks by state actors.

Read Also: XMR Pumps After Money Laundering Scheme! Is It Still a Safe Investment?

The Broader Crypto Scam Landscape

This event is part of a larger pattern of scams and hacks that have rocked the cryptocurrency industry in 2025. In the first quarter alone, over $1.6 billion in digital assets were stolen, with a significant portion of these losses attributed to hacks targeting major exchanges. 

The Bybit exploit, which accounted for more than 92% of the total, remains one of the largest and most impactful breaches on record. This period saw a dramatic rise in social engineering attacks, including the case involving Coinbase users, where $65 million was stolen between December 2024 and January 2025.

The frequency of such scams and hacks serves as a stark reminder of the vulnerabilities within the crypto ecosystem. While Monero’s privacy features remain a critical asset for users seeking anonymity, they also attract malicious actors looking to cover their tracks and launder stolen assets. 

This situation begs the question: how should the crypto community balance privacy with the need for security and transparency?

Read Also: How to Buy Monero (XMR)

XMR Outlook Post-Controversy

Given the ongoing scrutiny surrounding Monero and its role in this recent scandal, it’s likely that the privacy coin could face increased regulatory attention. In the short term, the price of XMR may remain volatile, driven by both market sentiment and the continued fallout from this incident. 

Investors should closely monitor any new developments in the investigation, as well as the broader trends in the crypto space regarding privacy coins and regulatory actions.

From a technical analysis standpoint, XMR’s price may face resistance at the higher levels reached during the recent spike. A pullback is possible as the market digests the news, but the fundamental appeal of Monero—its robust privacy features—remains strong, especially for those seeking anonymity in the increasingly public world of crypto.

Read Also: Why is Monero Used for Money Laundering? A Guide on the XMR Blockchain

Conclusion

In conclusion, while it’s clear that the theft and subsequent laundering of funds played a significant role in Monero’s recent price spike, it’s not definitive proof that scams are the sole drivers of market movements. 

However, this event serves as a potent reminder of the vulnerabilities that exist within the cryptocurrency ecosystem, particularly around privacy coins. As ZachXBT continues to investigate the case, it’s crucial for investors to remain vigilant, ensure their own security, and consider the broader implications of privacy in digital asset markets.

For those looking to invest in Monero or other privacy-focused coins, conducting thorough research and staying informed on developments in the crypto space is essential. Visit Bitrue to explore further and stay up-to-date with the latest trends in the world of cryptocurrency.

FAQ

Q: What caused Monero's recent price surge?
A: The recent surge in Monero’s price was largely due to the laundering of stolen funds, as over 3,500 BTC were converted into XMR. The transaction volume triggered a short-term spike, compounded by Monero’s limited liquidity.

Q: Was this price movement a result of scams?
A: Yes, the price movement was likely influenced by illicit activities, specifically a social engineering scam that led to the theft of BTC. The stolen funds were moved through exchanges and converted to Monero, leading to a spike in XMR’s price.

Q: Who is ZachXBT, and what did he uncover?
A: ZachXBT is a blockchain investigator who uncovered the theft and tracked the movement of the stolen funds. He has been investigating this specific incident and has ruled out certain speculations, including the involvement of North Korea’s Lazarus Group.

Q: Should I be concerned about privacy coins like XMR?
A: While privacy coins offer significant benefits in terms of security and anonymity, they also face increased scrutiny from regulators. It’s important for investors to consider both the potential rewards and risks of investing in such coins.

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