Hackers use stolen funds to buy ETH amid price crash

As a seasoned researcher with years of experience in the cryptocurrency realm, I must admit that the events unfolding in this space never cease to amaze me. The latest news about hackers leveraging market volatility to buy ETH using stolen funds is yet another reminder of the cat-and-mouse game between cybercriminals and blockchain security firms.


On August 30th, as the value of Ethereum (ETH) plummeted by more than 20%, cunning hackers seized the moment to purchase the dip with cryptocurrency they had previously stolen.

As reported by blockchain security company PeckShield, the individuals responsible for the 2021 hack on the decentralized finance (defi) protocol Pancake Bunny on Binance Smart Chain exchanged approximately 7.8 million DAI for about 2,922 Ether.

#PeckShieldAlert Our community contributor has detected that the #PancakeBunny exploiter-labeled address aped into $ETH when the market dropped. The exploiter swapped 7.8M $DAI for 2.922K $ETH.On May 19, 2021, PancakeBunny’s Bunny Protocol fell victim to a flash loan attack,… — PeckShieldAlert (@PeckShieldAlert) August 5, 2024

In 2021, a flash loan assault targeted the decentralized finance (Defi) protocol, resulting in the theft of approximately $46 million worth of its tokens. These tokens were then exchanged for assets such as BNB, USDT, and DAI. This attack led to a significant drop in the value of the project’s native token, BUNNY.

Last month, the exploiter’s address returned from dormancy and transferred 1,002 Ether to crypto mixer Tornado Cash. The service allows bad actors to make tracing of funds difficult for authorities. 

At the time, the attacker’s wallet reportedly held $11.4 million of Dai (DAI).

Likewise, it’s been reported by analytics company Lookonchain that the perpetrators responsible for the $200 million heist on cross-chain token bridge Nomad have likewise obtained Ethereum (ETH).

Users could transfer funds between various blockchain networks through Nomad Bridge. However, an attack originated due to a flaw in the smart contract responsible for temporarily storing tokens sent through this bridge.

On August 30, 2024, an individual used 39.75 million DAI to buy around 16,892 Ether. Subsequently, they broke down these Ether into smaller amounts (approximately 100 Ether each) and transferred them multiple times through Tornado Cash, a privacy mixer. In the end, about 2400 Ether were sent to this privacy-focused platform.

Throughout several instances over time, the thief transferred the ill-gotten gains on various occasions, including a laundering of approximately $1.5 million through Tornado Cash in January 2023. Before this, a sum of around $7.5 million was shifted to an unidentified location.

Currently, when the article was published, one of the alleged Nomad bridge hackers had approximately 14,500 Ethereum in their wallet, which equates to more than $33 million in value.

As a crypto investor, I’ve noticed some significant shifts recently, particularly with ETH. This digital currency experienced its most substantial decline in 2024, creating an enticing buying opportunity. Analysts suggest that ETH has breached crucial support levels, implying the price could potentially dip even lower.

In the past day, a significant decrease in prices occurred, coinciding with more than a billion dollars’ worth of cryptocurrency positions being forcedly closed across the market due to their values falling below the required margin level.

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2024-08-05 15:34