- Monero (XMR) surged nearly 40% after on-chain sleuth ZachXBT uncovered a suspicious swap of $330.7 million worth of Bitcoin into XMR, likely linked to hacked funds.
- The rally was amplified by Monero’s limited liquidity following major exchange delistings, raising concerns about market manipulation and the future of privacy coins.
Monday morning was blissful as Monero surged nearly 40% early Monday- which is out of the ordinary on Monday morning but on-chain researcher ZachXBT unveiled something. In a detailed investigation, ZachXBT revealed that approximately 3,520 bitcoin (BTC)—valued at a staggering $330.7 million—was suspiciously drained from an address and swiftly swapped for Monero.
The timing of this large-scale transfer coincided almost perfectly with the sudden surge in Monero’s price, leading many to believe the rally was fueled by laundering efforts.Â
ZachXBT suggested that the massive Bitcoin cache was funneled into Monero using multiple instant exchanges, platforms that typically allow fast swaps between cryptocurrencies without stringent Know-Your-Customer (KYC) checks.
Market data supports this theory, showing a spike in volatility concentrated in the XMR-BTC order books. However, key metrics that usually accompany a legitimate rally—such as an increase in active wallets and on-chain activity—remained relatively flat. This discrepancy further hints that the buying pressure came from a concentrated source rather than broader market enthusiasm.
Compounding the price surge was Monero’s limited liquidity. Over the past few months, major cryptocurrency exchanges have delisted XMR in efforts to curb its use in dark net transactions.
This thinning of available trading pairs and volume means that even moderate buying pressure can significantly impact price. According to CoinGecko, the order depth for Monero is notably shallower compared to other tokens with similar market caps, making it especially sensitive to large trades.
At the time of press, XMR is swapping hands with $279.30 after a 22.49% surge in the past 24 hours.%
While privacy remains Monero’s hallmark feature, events like this raise broader concerns about the future of privacy coins in a regulatory environment increasingly wary of anonymity-focused assets. As authorities and exchanges continue tightening controls, episodes like these may only add fuel to the arguments for stricter oversight—or even further delistings.
For now, traders and observers are closely watching Monero’s next moves. Will the price gains hold, or will the asset face selling pressure once the laundering operations conclude? Regardless, ZachXBT’s findings have sparked a broader conversation about how vulnerable thin markets can be to manipulation—and what that means for the future of decentralized finance.