- Fenbushi Capital co-founder offers 10–20% bounty for stolen crypto recovery.
- $1.2M of stolen assets frozen via on-chain investigation so far.
- The founder hopes AI-driven blockchain tools will enhance the recovery of the assets.
Fenbushi co-founder Bo Shen will offer a reward of 20% to any individual or organization that assists in the recovery of about $42 million in Ethereum (ETH), Bitcoin (BTC), USDC, and USDT that was stolen. Shen confirmed these were personal holdings and did not affect Fenbushi-related entities.
Bo Shen also noted that on-chain investigators, including ZachXBT and Taylor “Tayvano” Monahan, had already frozen around $1.2 million of the stolen funds. The bounty will be distributed once recovery is completed.
2022 Hack and Tracing Challenges
In 2022, Shen’s mnemonic seed phrase was compromised, and attackers moved funds across multiple exchanges. It is becoming very hard to trace fund exchanges such as ChangeNow and SideShift, a move that is complicating recovery efforts.
SlowMist, a blockchain analytics firm, later confirmed the hack’s cause as the compromised seed phrase. They detailed the assets involved, including 1,607 ETH, 4.13 BTC, 720,000 USDT, and $38.2 million in USDC.
Shen explained that tracking tools in 2022 were limited. At the time, investigators could not easily trace funds across chains. The new effort leverages advanced tools to follow asset movements more effectively.
Improved Tools Enable Renewed Recovery
Advancements in AI-driven blockchain forensics could enable a clearer understanding of the asset flows. Shen highlighted that these tools allow the identification of complex transaction patterns previously invisible.
The renewed investigation uses address clustering, flow analysis, and machine learning to track stolen funds. These methods have improved the chances of recovering additional assets. Shen noted that recovery remains uncertain despite these advances.
Collaboration with exchanges allows investigators to freeze funds identified on centralized platforms. The $1.2 million frozen demonstrates the process, showing tangible results from coordinated forensic and technical efforts.
Broader Lessons and Security Emphasis
The case highlights the critical risk of seed phrase compromise. If exposed, private keys allow unrestricted access to all funds in a wallet. Proper wallet security measures remain essential for all crypto users.
Bo Shen’s bounty also encourages information sharing. White-hat hackers, security researchers, and investigators can now contribute to recovery efforts with a clear incentive. This approach aligns financial motivation with technology-driven investigation.
The ongoing Fenbushi crypto bounty recovery demonstrates how leveraging modern tools and professional investigators can help trace and recover.