Crypto News

Hackers funnel $2.7 million through Tornado Cash privacy tool

Cybercriminal uses Tornado Cash to launder $2.7 million

An Ethereum address connected to an exploit of the decentralized exchange Raydium laundered $2.7 million in ether (ETH) through the privacy tool Tornado Cash, according to security firm CertiK.

In December, Raydium, a decentralized exchange built on the Solana blockchain, was hacked for over $4.4 million in various assets.

The hacker was able to withdraw Raydium’s liquidity pool tokens into their control after compromising the admin account keys powering Raydium’s smart contracts. The hacker later moved the stolen funds to Ethereum.

More than a month after the incident, an address labeled by Etherscan as the exploiter of Raydium transferred $2.7 million in stolen assets to Tornado Cash.

Hackers often use Tornado Cash to obscure the transaction history of stolen assets.

Tornado Cash has been in the spotlight since last year for being sanctioned by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).

Following the sanctions, all U.S.-based individuals and entities are prohibited from interacting with the app due to its potential for money laundering. However, it continues to be widely used by hackers of decentralized finance protocols.

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Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry. She is passionate about helping to foster the growth of the industry and believes in the power of blockchain technology to revolutionize the world.