Deribit Hackers Move Stolen ETH to Blacklisted Mixing Service, Tornado Cash

Deribit Hackers Move Stolen ETH to Blacklisted Mixing Service, Tornado Cash

The hackers behind the $28 million theft from the Panama-based crypto exchange, Deribit, have begun moving the stolen Ethereum (ETH) to the sanctioned crypto coin mixing service, Tornado Cash.

Deribit Hackers Move ETH to Tornado Cash

On November 1st, the hot wallet of Deribit, a leading cryptocurrency derivatives exchange was compromised, with the attackers siphoning Bitcoin (BTC), ETH, and USD Coin (USDC).

According to on-chain datathe unknown culprits behind the Deribit exploit are now transferring stolen funds using Tornado Cash, the infamous decentralised cryptocurrency mixer.

Data from the Ethereum block explorer Etherscan shows that the exploiters used 17 transactions to move a total of 1,610 Ether, worth around $2.5 million, to Tornado Cash.

The first transaction on November 5th was $350,000. With only $2.5 million moved, at least $25.5 million worth of cryptocurrencies from the Deribit exploit remains to be tracked.

Possible Effects on Tornado Cash

On August 8, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash for its association with more than $7 billion worth of stolen funds.

However, the crypto advocacy group Coin Center filed a complaint against OFAC for blacklisting Tornado Cash. The use of the service once again highlights the reason why the coin mixing service was sanctioned.

The continuous use of Tornado Cash by crypto hackers and fraudsters only solidifies the claims of regulators.

Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.

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