Pseudonymous researcher ZachXBT, known for his on-chain investigations, has successfully recovered the majority of funds from a rare DeGods non-fungible token (NFT) after it was stolen in a phishing scam in May 2023. Updating his 505,200 followers on February 24, ZachXBT shared insights from his nine-month inquiry into the theft of the DeGods #3251 NFT, indicating that most of the funds have now been returned to the victims.
The DeGods NFT was sold for 99 Ethereum in May 2023, valued at approximately $177,000 at the time. ZachXBT was approached by the victim shortly after the realization that their wallet had been emptied, seeking assistance in recovering the digital artwork. His investigation process, which often includes the use of simple charts to illustrate phishing scam mechanisms and track fund movements, can vary in duration depending on complexity.
Despite the challenges, ZachXBT expressed satisfaction in being able to facilitate the recovery of a significant portion of the stolen funds and their subsequent return to the rightful owners. He emphasized the importance of sharing success stories, underscoring the possibility of recovery even in prolonged processes.
However, ZachXBT announced his intention to conclude his pro bono investigative work in the blockchain sphere soon. This decision came following feedback from users expressing frustration over unsuccessful attempts to recover stolen cryptocurrencies, despite his free-of-charge service. He clarified that while he provides assistance voluntarily, such challenges have prompted him to reconsider his public goods contributions.
ZachXBT has played a notable role in various sectors of the crypto industry, aiding both individuals and national authorities in unraveling crypto-related crimes. Notably, French authorities leveraged ZachXBT's research in October 2022 to apprehend fraudsters involved in the theft of $2.5 million worth of NFTs. Christophe Durand, deputy director of France's national cyber unit, acknowledged ZachXBT's pivotal role in uncovering the incident through his social media investigations.
