Parity wallet hacker begins laundering 150k in Ethereum after 7 years of inactivity

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As a crypto investor who has been following the developments in the Ethereum ecosystem since its early days, I can’t help but feel a mix of emotions upon hearing the news that the hacker who stole 150,000 ETH from Parity Multisig Wallet back in 2017 is now attempting to launder some of the stolen funds.

A hacker who obtained approximately 150,000 Ethereum (ETH) by breaching the Parity Multisig Wallet in 2017 is now engaging in money laundering activities, starting with the transfer of 3,050 ETH.

As a crypto investor, I’d rephrase it like this: In July 2017, a hacker managed to pilfer around 150,000 Ethereum (ETH) from the Parity Multisig Wallet version 1.5. Fast forward seven long years, and according to reports from the smart contract monitoring service Cyvers Alerts, this unscrupulous actor transferred the equivalent of $9 million in ETH to the exchange eXch. The hacker then initiated a laundering process involving 3,050 ETH, employing “multiple consolidated addresses.”

In 2017, a weakness in Parity Multisig Wallet version 1.5 and above resulted in the loss of more than 150,000 ETH, equivalent to around $30 million USD at that moment.The individual responsible for this theft showcased impressive restraint, making this an historic event in the crypto world. Presently,…— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) May 13, 2024

I, as an analyst, would put it this way: In my analysis, the hacker is currently holding approximately 83,000 ETH, which translates to around $246 million based on current market prices. This stolen Ethereum was taken during the 2017 attack on three multisignature contracts related to Parity Multisig Wallet, resulting in a loss of 153,037 ETH. My assessment underscores the importance of addressing vulnerabilities within the Ethereum ecosystem that were exposed through this hack.

Experts at OpenZeppelin, a renowned blockchain infrastructure provider, proposed an alternative approach to prevent a similar attack in the future. They recommended against utilizing the “delegatecall” function extensively as a one-size-fits-all method for function calls.

As an analyst, I cannot stress enough the significance of adhering to strong coding practices and guidelines within the Ethereum community. Neglecting this crucial aspect, our team cautions, may result in severe repercussions, even from what initially appears as a harmless coding error.

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2024-05-13 15:06