Fenbushi Capital Co-Founder Offers up to 20% of $42M to Recover Stolen Crypto

Shen disclosed the theft publicly on Nov. 23, 2022, roughly two weeks after the breach occurred in the early morning hours of Nov. 10, 2022. The compromised wallet, ending in the digits 894, held the bulk of his personal digital assets. Fenbushi Capital, the Shanghai-based blockchain venture firm Shen co-founded, was not affected.

The stolen assets included approximately $38.2 million in USDC, 1,607 ETH, roughly 720,000 USDT, and 4.13 BTC, along with smaller positions in tokens including UNI, REP, and LQTY. Blockchain security firms Slowmist and Beosin traced the root cause to a compromised mnemonic seed phrase, which gave the attacker direct control over the wallet.

At the time, the theft took place against the backdrop of the FTX collapse, which had rattled crypto markets and overwhelmed the attention of on-chain investigators. Shen reported the incident to law enforcement, including the FBI, and engaged legal counsel. Progress stalled.

“A total of 42M worth of crypto assets, including 38M in USDC were stolen from my personal wallet ending in 894 in the early morning of November 10 EST,” Shen wrote in his original November 2022 statement.

He added:

“The stolen assets are personal funds and do not affect on Fenbushi related entities.”

More than 1,200 days later, Shen said improved blockchain analytics and artificial intelligence (AI) tools have made the stolen asset flow paths significantly clearer. His team has gathered what he described as additional key clues and evidence pointing to where the funds moved after the initial theft.

The drained assets were funneled through mixing services before being converted into other tokens, with some flows ending in DAI. That layering made early tracing difficult, but Shen indicated that cross-platform collaboration has changed the equation.

Onchain investigator ZachXBT and security researcher Tayvano have already assisted in freezing approximately $1.2 million in related assets. Shen said his team is working to formally claim those funds and will honor the bounty on them promptly. He also credited Chiachih Wu, Bitrace Team, and Slowmist Team for their ongoing contributions.

The bounty is structured on a sliding scale based on contribution. Anyone whose work leads to a material recovery — individuals, white-hat researchers, analytics firms, or other organizations — is eligible regardless of background or affiliation.

Shen posted the full announcement in Chinese on X, calling on anyone with credible information to come forward. The contact email for submissions is shenbo.case@gmail.com.

The case illustrates a persistent vulnerability in self-custodied crypto holdings: seed phrase exposure. Even experienced investors with significant holdings remain at risk when recovery phrases are stored or transmitted insecurely. Onchain data is permanent, and in Shen’s case, that permanence could work in his favor.

Recovery remains difficult. The funds have had more than three years to be laundered and dispersed across wallets and services. Shen has acknowledged the challenge but expressed confidence that modern forensic tools give his team a credible path forward.

Whether the bounty produces results will depend on whether anyone with direct knowledge of the attacker’s identity or wallet infrastructure comes forward. The investigation is ongoing, and Shen said updates will be posted to his X account.

FAQ 🔎

• What was stolen from Bo Shen’s crypto wallet? Approximately $42 million in cryptocurrency — including $38.2 million in USDC, 1,607 ETH, 720,000 USDT, and 4.13 BTC — was drained from his personal Ethereum wallet on Nov. 10, 2022.
• How was Bo Shen’s Ethereum wallet hacked? Security firms SlowMist and Beosin determined the attacker gained access by compromising Shen’s mnemonic seed phrase, allowing direct control over the wallet.
• What is the bounty Bo Shen is offering for the stolen crypto? Shen is offering 10% to 20% of any recovered amount to individuals or organizations that make a material contribution to recovering the funds.
• How can someone submit tips about the Bo Shen crypto theft? Anyone with credible information can contact Shen’s team directly at shenbo.case@gmail.com.

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