Fenbushi Founder Bo Shen Loses $42M in Stablecoins, Bitcoin, Ethereum to Hackers

Bo Shen, the founding partner of venture capital firm Fenbushi Capital, took to Twitter on Wednesday to share the news of hackers stealing as much as $42 million in crypto from his personal wallet.

According to Shen, the theft occurred on November 10, with most of the stolen funds— $38 million—being the USDC stablecoin.

He added that the stolen assets are personal funds and do not affect any entities related to Fenbushi.

Shen, who lives in the Atlanta Metropolitan Area according to LinkedIn, went on to say the incident has been reported to the local law enforcement, with both the FBI and lawyers involved.

“Civilization and justice will eventually prevail over barbarism and evil. This is the iron law of human society. It’s just a matter of time,” wrote Shen.

Fenbushi founder’s seed phrase compromised

While the Fenbushi chief didn’t reveal additional details of the incident, blockchain security firm SlowMist said its analysis showed that hackers managed to compromise Shen’s wallet seed phrase.

According to the security specialists, the investor was using the non-custodial Trust Wallet; however, “Trust Wallet itself has no security issues related to this theft.”

SlowMist also shared Shen’s affected addresses for Ethereum (ETH), Tron (TRX), and Bitcoin (BTC), with most of the funds from these addresses sent to crypto swapping platform ChangeNOW.

“We are calling on the hackers to pay back the money ASAP,” added SlowMist.

Notably, this is not the first time Shen has fallen victim to hackers.

Back in 2016, bad actors used social engineering techniques to get access to Shen’s mobile phone and email to facilitate an exploit that resulted in about $300,000 in Augur (REP) and an undisclosed amount in ETH stolen from his wallets.