- In a recent development, a hacker involved in the 2021 Poloniex crypto exchange hack has moved 1,100 Ethereum (ETH) to Tornado Cash, a U.S.-sanctioned cryptocurrency mixer.
- The stolen funds, valued at approximately $3.4 million, are being laundered through Tornado Cash, as per data analysis by security firm PeckShield.
- This marks the first time the hacker has moved the funds since the hack, which resulted in a loss of $100 million from Poloniex.
The hacker involved in the 2021 Poloniex hack has reportedly transferred 1,100 ETH to Tornado Cash in an attempt to launder the stolen funds. This marks the first movement of the funds since the hack, which resulted in a loss of $100 million from the crypto exchange.
Poloniex Hacker Moves Stolen Funds
The hacker responsible for the massive Poloniex crypto exchange hack in November 2021 has reportedly transferred 1,100 Ethereum (ETH), valued at approximately $3.4 million, to the U.S.-sanctioned cryptocurrency mixer Tornado Cash. This move was detected through on-chain data analysis conducted by security firm PeckShield and confirmed by WuBlockchain. It is the first time the hacker has moved the funds since the hack.
Attempt to Launder Stolen Funds
By transferring the stolen funds to Tornado Cash, the hacker is attempting to launder the money. Cryptocurrency mixers like Tornado Cash are often used by cybercriminals to obscure the trail of stolen cryptocurrency, making it difficult for law enforcement agencies to track illicit transactions. The Poloniex hack, which resulted in a loss of $100 million from one of the exchange’s hot wallets, is widely attributed to the North Korean Lazarus Group, a notorious state-sponsored hacking organization.
Poloniex’s Unsuccessful Negotiation with the Hacker
In a unique move following the hack, Poloniex offered the hacker a 5% bounty, amounting to around $5 million, to return the remaining 95% of the stolen funds. However, this attempt to negotiate with the hacker appears to have been unsuccessful, as evidenced by the recent transfer of ETH to Tornado Cash. The hack has significantly impacted the exchange’s reputation and security measures, especially given that Poloniex has been a centralized exchange since its inception in 2014 and was later acquired by Tron founder Justin Sun in 2019.
Conclusion
The recent movement of stolen funds from the Poloniex hack highlights the ongoing challenges faced by crypto exchanges in maintaining security and combating cybercrime. Despite attempts to negotiate with the hacker and recover the stolen funds, the hacker’s move to launder the money through Tornado Cash underscores the sophisticated methods employed by cybercriminals in the crypto space. It serves as a stark reminder for exchanges and users alike to prioritize security measures and remain vigilant against potential threats.
