Poloniex Hacker Transfers $3.3M ETH to Tornado Cash

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As a seasoned crypto investor with years of experience in this volatile market, I can’t help but feel a mix of frustration and concern upon hearing about the latest developments regarding the Poloniex hacker. The fact that they have moved $3.3 million worth of ETH through Tornado Cash, a wallet known to have been used by the North Korean Lazarus group for money laundering activities, is a stark reminder of the risks we face in this space.

A cybercriminal who pilfered $125 million from Poloniex in November moved approximately $3.3 million worth of ethers (ETH), amounting to 1,100 units, to the privacy platform Tornado Cash according to Etherscan’s records.

As a researcher studying this particular transaction, I’ve discovered that following a 178-day period of inactivity, a series of 11 transactions took place, each transferring 100 ETH (approximately $326,000 at the time) for a total of 1,100 ETH. Furthermore, on April 30, there was an additional transaction moving 501 BTC ($32 million) to an unknown wallet, resulting in a combined balance of approximately $181 million across various blockchains.

In 2022, the US Treasury Department imposed sanctions on Tornado Cash due to its involvement in concealing over $12 million worth of cryptocurrency tokens. This masking was carried out by the North Korean hacking group Lazarus, who had previously used this platform to hide the proceeds from the Heco Bridge hack and the $625 million exploit of Axie Infinity.

As a crypto investor, I’m constantly keeping an eye on the latest developments in the industry to ensure the safety of my investments. One issue that continues to concern me is the risk of hacks and money laundering. A recent report by Elliptic, a blockchain security firm, highlights this issue, particularly with regards to Lazarus Group’s use of Tornado Cash for money laundering activities. In simpler terms, Lazarus Group is a hacking group that has been linked to several high-profile crypto heists. They have allegedly used Tornado Cash, which is a privacy tool, to launder the stolen funds. This underscores the importance of staying informed and vigilant when it comes to the security of my crypto investments.

The significant transfer of stolen funds from the Poloniex hacker to Tornado Cash, along with the connection to Lazarus Group’s operations, highlights the persistent difficulties and dangers associated with cryptocurrency heists and money laundering.

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2024-05-07 10:12