Poloniex Hacker Reportedly Funnels $3.4 Million through Tornado Cash Mixer

cryptonews.com:

The notorious Poloniex hacker responsible for last year’s security breach on the cryptocurrency exchange is on the move again. The thief transferred 1,100 Ethereum (ETH), valued at $3.4 million, to the sanctioned crypto mixer Tornado Cash on May 7 in an effort to launder the stolen funds.

The movement of the funds was revealed through an on-chain data analysis from security firm PeckShield.

#PeckShieldAlert #Poloniex hacker- labeled address 0x3e94…3fdfd has transferred 1.11k $ETH (worth ~$3.4m) to #Tornadocash pic.twitter.com/JIDG0pYfUH

— PeckShieldAlert (@PeckShieldAlert) May 7, 2024

Etherscan data disclosed that the ETH tokens, valued at approximately $3.4 million, were transferred to crypto mixer Tornado Cash in 11 batches of 100 ETH each. WuBlockchain also reported on this development, revealing that the hacker utilized Tornado Cash for the first time to launder the stolen funds.

Tornado Cash is a privacy tool that breaks the link between a user’s crypto deposit and wallet address through a process known as “crypto mixing.” It pools and anonymizes transactions, allowing users to withdraw funds to a new wallet and protecting their financial privacy. The service is illegal in the US and has been flagged by the Treasury following its association with the North Korean Lazarus Group, where it was used to conceal funds stolen from the $625 million Axie Infinity exploit. The mixer’s founders are also facing money laundering charges in the US.

Tornado Cash was Blacklisted by the US Treasury.

Apparently, Tornado Cash played a key role in the $625 million hack of Axie Infinity's Ronin Network by the Lazarus Group, a North Korean hacking group. – US Treasury

This is a developing story.

Source: https://t.co/DVFAHsmdQP