Two wallet addresses were compromised after a private key leak, leading to the theft of around $2.3 million in USDT. The attacker quickly converted the stolen funds into 757.6 ETH and then routed them through Tornado Cash to obscure the transaction trail.

This incident highlights a recurring security risk in crypto: key management failure. Even large balances can be drained instantly once a private key is exposed, regardless of on-chain transparency. Mixing services are often used after such attacks to reduce traceability, making fund recovery extremely difficult.

The key lesson here is clear self-custody comes with full responsibility. Hardware wallets, strict operational security, and avoiding exposure of private keys remain critical as attackers continue to exploit even a single point of failure.