MENA regulated Rain crypto exchange admits to breach noting all customer funds are safe

UAE and Bahrain regulated crypto exchange Rain has made a statement admitting to the severe security breach which resulted in the loss of $14.8 million, yet notes that all customer funds are safe.

The Bahrain-based crypto exchange Rain recently faced a severe security breach. Blockchain expert ZachXBT reported that the exchange lost $14.8 million on April 29, 2024. The culprits split the stolen funds into wallets filled with 137.9 BTC and 1,881 ETH, which have remained untouched since the attack.

According to ZachXBT, “It appears the crypto exchange Rain was likely exploited for $14.8M after their BTC, ETH, SOL, and XRP wallets saw suspicious outflows.” He noted that these funds were swiftly moved to instant exchanges and exchanged for BTC and ETH.

Rain crypto exchange, addressed the issue in a blog post stating, ” We would like to address news circulating about a security incident involving Rain, and let our customers know that the situation has been resolved. We assure you that we have already taken all the necessary steps to address this matter to protect customer funds.”

Rain added that “customers’ funds are under custody, fully accounted for, and held on a 1:1 basis”.

They added that this means that all customer fiat currency and crypto assets are held with the highest standards of security and regulatory compliance.

As a result Rain have put additional controls to strengthen their security after the incident.

Rain Group also emphasized that it has “covered any potential losses resulting from this incident, ensuring that our customers’ interests remain protected.”

The exchange remains operational including crypto buy, sell, send, receive, along with fiat deposit, and withdrawals.

In their final comments they explained that they are fully cooperating with relevant legal and regulatory authorities to ensure the issue is handled appropriately.

The Rain incident highlights a broader issue within the crypto industry that of securing funds on centralized crypto exchanges. In the past year alone, investors lost $2 billion to similar hacks and exploits, with an additional $333 million stolen in the first quarter of this year.

Rain crypto exchange is regulated by both Abu Dhabi Global Market in UAE, and the Central Bank of Bahrain. In 2022, RAIN Crypto exchange raised $110 in a Series B funding round. The round was co-led by Paradigm and Kleiner Perkins with participation from multiple parties including Coinbase Ventures, Global Founders Capital, MEVP, Cadenza Ventures, and CMT Digital.