Arrests Made in $100 Million Cryptocurrency Hack of Four Dragons Exchange

The $100 million hack of the Four Dragons cryptocurrency exchange has a new development as two arrests have been made.

Written by: Timothy St. John • Wednesday, May 15, 2024 • 2 min read

Last updated: Wednesday, May 15, 2024

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There are new developments in the ongoing case investigating the hack of $100 million worth of cryptocurrency tokens from the Four Dragons crypto exchange.

Two suspected hackers, Violetta Dmitrievna Dmitrieva and Marat Zaripov Rustemovich, have been arrested by authorities in connection with the heist. The hack was one of the largest of its kind this year, raising concerns about cybersecurity and the safety of cryptocurrency exchanges.

What to Know about the Hack

We reported on the hack back in February of this year, and no arrests had been made at that point. It is now suspected that Dmitrieva and Zaripov worked together to use weaknesses in the exchange’s security programs to pull digital currency out of the exchange and into their own accounts. Zaripov previously worked at Four Dragons, and his involvement points to possible insider security weaknesses that have been present in other high profile hacking cases.

The two suspects have been charged under Kyrgyzstan law, Article 2024 Part 4, and that could require them to spend as much as eight years behind bars. If further charges are brought against them, their sentences could last as long as 15 years.

Both suspects are Russian nationals operating in Kyrgyzstan who have lodged criticisms at their government. The Russian embassy has not come to their aid in this situation, making for a complicated diplomatic situation.

The investors for the case said that they were able to trace the suspects through their Google Translate history, finding evidence there that connected them to the incident.

Cryptocurrency Market Implications

This hack has raised concerns about the safety of cryptocurrency trading and the need for greater security in the industry. Every time there is a hack of this nature, it makes investors less inclined to strongly commit to cryptocurrency. This type of hack tends to increase asset volatility and make the market outlook uncertain for a short period of time.

There is little information coming out of Four Dragons at this time about the incident, but we will keep you updated on any new developments as they occur.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.