Blockchain analyst ZachXBT has cast doubt on the security of the Rain cryptocurrency exchange, suggesting a potential hack that could have resulted in losses of $14.8 million on April 29th. Rain, which operates as a cryptocurrency exchange and custodian catering to regions including the Middle East, Turkey, and Pakistan, faces allegations of compromised funds.

In a detailed blog post, ZachXBT outlined his observations, pointing to unusual outflows from Rain's Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ripple (XRP) wallets. ZachXBT further substantiated his claims by identifying two specific wallet addresses where the stolen funds are presumed to be located.

Despite these alarming findings, Rain has yet to issue an official statement addressing the purported incident, leaving investors and users in a state of uncertainty.

The situation echoes recent security breaches in the cryptocurrency space, such as the exploit that affected decentralized exchange FixedFloat, resulting in the loss of approximately $2.8 million from its hot wallet. In this instance, suspicious transactions involving various cryptocurrencies, including ETH, USDT, WET, DAI, and USDC, further exacerbated concerns surrounding asset security.

However, amidst these security challenges, April saw a significant decline in cybercrime-related losses compared to previous months. According to CertiK, total losses incurred by cryptocurrency projects amounted to $25.7 million, marking the lowest figure recorded since 2021. Despite this improvement, compromised private keys remained a leading cause of security breaches, underscoring the ongoing need for enhanced security measures within the cryptocurrency ecosystem.