Cryptocurrency Hackers Launder $4M Through Tornado Cash During BTC Recovery
Cryptocurrency hackers have recently laundered nearly $4 million through the popular cryptocurrency mixing service Tornado Cash, as reported by blockchain security firm Pecksheild. This illicit activity stems from funds that were stolen more than three months ago from the decentralized finance protocol Unizen and Bahraini cryptocurrency exchange Rain.
On August 7, Pecksheild revealed that a wallet address associated with the Rain exchange hack had transferred 1,155 ETH, equivalent to $2.9 million, to Tornado Cash for the first time since the April 29 attack.
Trail of Laundered Funds
Following the initial transfer, the stolen funds amounting to $14.8 million were exchanged for BTC and ETH, and then split into two wallets containing 137.9 BTC and 1,881 ETH, respectively. These wallets have remained inactive for 43 days, with the attacker still holding assets worth approximately $9.5 million at the time of reporting.
Additionally, another exploiter from an address previously associated with the Unizen vulnerability moved 865.4 ETH, valued at around $2.16 million, into Tornado Cash. The funds, which had been dormant since March 8, were part of 1,679,859 DAI transactions. They were then exchanged for 863.67 Ethereum and sent to Tornado Cash through 26 separate transactions. This scheme, orchestrated by the attacker, remained undetected for 151 days.
Crypto Market Analysis
Amidst these illicit activities, the cryptocurrency market has been experiencing volatility, with Bitcoin recently recovering from a six-month low of $49,500 reached on August 5.
Analysts remain divided on the future of Bitcoin, with some predicting a significant rise based on historical patterns and technical indicators. Others, however, anticipate challenges as Bitcoin continues to fluctuate.
As the market reacts to these developments, it remains to be seen how the recent money laundering through Tornado Cash will impact Bitcoin prices and the overall cryptocurrency ecosystem.
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