The Poloniex cryptocurrency exchange hacker recently moved 100 ETH to the Tornado Cash mixer.
According to journalist Colin Wu, this marks the first instance of a hacker laundering stolen assets. Meanwhile, a substantial sum of $182 million in cryptocurrencies, including Ethereum (ETH), Tron (TRX), Bitcoin (BTC), and Bitcoin Token (BTCT), remains untouched in the hacker’s wallet.
On November 10, 2023, Poloniex suffered losses of nearly $125 million in cryptocurrencies due to the attack. Exchange owner Justin Sun announced the successful identification and freezing of a portion of the assets linked to the hacker’s addresses. Subsequently, Sun offered a $10 million reward for the return of the stolen assets.
Hackers targeting the Kronos Research cryptocurrency platform and the Hundred Finance cross-chain lending protocol also initiated fund transfers to the cryptocurrency mixing service Tornado Cash.
Analytics firm PeckShield reported that the hacker conducted a test transaction with $200 worth of ETH initially. Subsequently, they moved 1,314 ETH, valued at nearly $4 million, to a new address. From there, the hacker executed ten transactions of 100 ETH each, directing the funds to the Tornado Cash service.
The volume of funds sent to Tornado Cash increased to 3,000 ETH, approximately equivalent to $3 million.
Kronos Capital fell victim to a hack in November 2023, following unauthorized access to API keys.
Due to its potential for moving illegally obtained funds, the U.S. government imposed sanctions against Tornado Cash, a crypto mixer, in August 2022. The developers faced charges of money laundering and sanctions violations. In late March, the prosecution called for a five-year prison sentence for Tornado Cash co-founder Alexey Pertsev.
Summary Review: The recent movement of stolen assets by the Poloniex hacker to the Tornado Cash mixer marks a concerning development in the ongoing saga of cryptocurrency theft. While a portion of the stolen funds remains untouched, the laundering of assets raises questions about the security of digital assets and the effectiveness of measures to combat cybercrime in the crypto space. The involvement of other hacked platforms in transferring funds to Tornado Cash underscores the challenges faced by the cryptocurrency community in safeguarding assets and holding perpetrators accountable. Despite efforts to mitigate such incidents, the persistent threat of hacking and illicit activities continues to pose risks to investors and the integrity of the crypto market. The case also highlights the regulatory scrutiny surrounding cryptocurrency mixers like Tornado Cash, which have been targeted by authorities for their potential role in facilitating money laundering and sanctions violations. As governments seek to address these concerns, the crypto community must navigate evolving regulations while striving to uphold transparency and security standards. Overall, the Poloniex hack serves as a reminder of the importance of robust security measures and regulatory compliance in the cryptocurrency ecosystem. Continued vigilance and collaboration among stakeholders will be essential to address emerging threats and foster trust in digital asset markets.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
