Cryptocurrency Hackers Launder $4M Through Tornado Cash During BTC Recovery
Cryptocurrency hackers have successfully laundered nearly $4 million through the popular cryptocurrency mixing service Tornado Cash, as reported by blockchain security firm Pecksheild. This incident comes following the theft of funds from decentralized finance protocol Unizen and Bahraini cryptocurrency exchange Rain over three months ago.
Funds Laundering and Transfer
On August 7, Pecksheild revealed that a wallet address associated with the Rain exchange hack transferred 1,155 ETH, equivalent to $2.9 million, to Tornado Cash. This marked the first movement of the stolen funds since the initial April 29 attack. Subsequently, the stolen funds, totaling $14.8 million, were exchanged for BTC and ETH and divided into two wallets holding 137.9 BTC and 1,881 ETH. These wallets have remained inactive for 43 days, with the attacker still holding approximately $9.5 million in ETH and BTC.
Reactivation of Unizen Wallet
Before Rain could recover the funds, another exploiter linked to the Unizen protocol vulnerability moved 865.4 ETH, valued at approximately $2.16 million, into Tornado Cash. Pecksheild reported this transaction on August 7, revealing that the funds had been dormant since March 8. The attacker stole $2.1 million in USDT during the March 8 attack and converted it to DAI for the transfer.
Bitcoin’s Recovery and Analyst Predictions
Currently, Bitcoin is in the process of recovering from a low of $49,500 reached on August 5. Analysts have differing opinions on the future price movements of Bitcoin. Some analysts anticipate a significant rise, drawing parallels to past patterns where Bitcoin experienced substantial growth following a major crash.
According to CryptoJack, Bitcoin’s historical performance suggests a potential surge following periods of decline. Meanwhile, Titan of Crypto highlighted the significance of BTC holding the $56,000 mark for continued upward momentum.
However, conflicting views exist among analysts, with some forecasting a price recovery towards the $40,000 mark. As the market remains uncertain, the impact of the recent fund transfers on Bitcoin’s price trajectory is yet to be determined.
In conclusion, the laundering of stolen funds through Tornado Cash highlights the ongoing challenges of combating cryptocurrency-related crimes. As regulatory measures continue to evolve, the cybersecurity landscape within the crypto space remains a crucial area for vigilance and response.
