Cryptocurrency Hackers Launder $4 Million Through Tornado Cash
Recently, blockchain security firm Pecksheild revealed that cryptocurrency hackers had laundered nearly $4 million through the popular cryptocurrency mixer Tornado Cash. This laundering operation was linked to the theft of funds from the decentralized finance protocol Unizen and Bahraini cryptocurrency exchange Rain over three months ago.
On August 7, Pecksheild reported that a wallet associated with the Rain exchange hack had transferred 1,155 ETH worth $2.9 million to Tornado Cash, marking the first movement of the stolen funds since the April 29 attack.
Following the initial transfer, funds totaling $14.8 million were exchanged for BTC and ETH and split into two wallets holding 137.9 BTC and 1,881 ETH, respectively. These wallets have remained inactive for 43 days, with the hacker still holding 726 ETH and 137.9 BTC, amounting to approximately $9.5 million.
Unizen Wallet Reactivation and Additional Laundering
Prior to Rain reclaiming the stolen funds, another exploiter related to the Unizen DeFi protocol vulnerability moved 865.4 ETH, valued at around $2.16 million, into Tornado Cash. These funds, dormant since March 8, were part of 1,679,859 DAI transactions.
Subsequently, the DAI was converted into 863.67 Ethereum and transferred to Tornado Cash in a series of 26 separate transactions, primarily sent in batches of 100 ETH. The funds had been inactive for 151 days following the March 8 attack, which stemmed from an approval issue.
Unizen previously attempted to offer a bounty for the stolen funds without success. A compensation plan was later initiated by the project founder, Sean Noga, using personal funds.
Bitcoin Recovery and Analysts’ Views
As these laundering operations unfolded, Bitcoin was in the midst of a recovery phase from a six-month low of $49,500 reached on August 5. Analysts remain divided on the future price movement of Bitcoin.
Some analysts, like CryptoJack, point to historical patterns indicating a potential significant rise. They draw parallels from the 2020 crash during the COVID-19 outbreak when Bitcoin plummeted to $4,000 before skyrocketing 1,400% over the following 13 months.
Another analyst, Titan of Crypto, highlighted BTC’s 38.2% Fibonacci retracement level and suggested that maintaining the $56,000 mark could lead to further upward momentum.
However, contrasting views suggest that gold prices could push towards the $40,000 mark. As Bitcoin currently trades at $56,246, with a 15% decline since early August, the impact of the recent laundering activities on its price remains uncertain.
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