Cryptocurrency Hackers Laundering Stolen Ethereum Through Tornado Cash
The hackers responsible for the Bahrain Rain Exchange breach in April 2024 have begun laundering stolen Ethereum through Tornado Cash. This move, detected by blockchain security company PeckShield, marks a new phase in the aftermath of the hack.
Rain Exchange Hack Revealed Losses of $14.8 million
The drain on Rain Exchange resulted in a staggering loss of approximately $14.8 million. The attack, which occurred on April 29, 2024, went unnoticed until cryptocurrency investigator ZachXBT brought it to light in May. Suspicious outflows from Rain’s wallets, including Bitcoin, Ethereum, Solana, and XRP, were a red flag of the breach.
Immediately following the attack, the stolen funds were swiftly transferred to instant exchanges and converted mainly into Bitcoin and Ethereum, complicating tracking efforts.
Increasing Challenges for Recovery and Regulation
The recent movement of Ethereum via Tornado Cash indicates that the attackers are taking steps to obscure the origin of the stolen funds further. This tactic poses a significant challenge for law enforcement and blockchain analysts in tracking and potentially recovering the assets.
The incident is especially noteworthy considering Rain Exchange’s recent regulatory successes. The exchange had obtained a license as a cryptocurrency brokerage and custody service provider in Abu Dhabi just a year before the hack occurred.
The year 2024 has seen a surge in cryptocurrency hacks and scams, with notable incidents like the attack on Indian exchange WazirX, resulting in over $200 million in losses. Even recent events, such as the exploitation of Ronin Bridge for over 4,000 Ethereum, highlight the vulnerabilities in the cryptocurrency space.
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