- The hacker who exploited Kronos Research for $25 million in November 2023 has moved $4 million of Ethereum through Tornado Cash, a crypto mixer, in an attempt to launder the funds.
- The funds remained dormant for six months until one of the six wallets began transferring funds to Tornado Cash on May 7th, 2024.
- Despite the backlash from governments, crypto mixers like Tornado Cash continue to be used by hackers to launder stolen funds.
After exploiting Kronos Research for $25 million, a hacker has moved $4 million of Ethereum through Tornado Cash, a crypto mixer, in an attempt to launder the stolen funds.
Hacker Moves $4M of Stolen Ethereum Through Tornado Cash
The hacker who exploited Kronos Research for $25 million in November 2023 has moved $4 million of Ethereum through Tornado Cash, a crypto mixer. The funds were transferred to six different cryptocurrency wallet addresses and remained dormant for six months until one of the wallets began transferring funds to Tornado Cash on May 7th, 2024.
How the Kronos Research Hacker Laundered the Funds
Tornado Cash is an open-source cryptocurrency tumbler, also known as a “crypto mixer.” This tool obscures the path of crypto transactions, making it extremely difficult to determine the original source of the funds. The wallet first transferred 200 $ETH to Tornado Cash, then sent an additional 1,314 $ETH worth $4 million to a new address. From this new wallet, the hacker made 10 transactions of 100 ETH to Tornado Cash, rendering the stolen Ethereum untraceable.
Crypto Mixers Face Backlash From Governments
Crypto mixers have seen significant adoption in recent years. However, the majority of this adoption has been with illicit assets. Hackers have chosen crypto-mixing services over centralized exchanges as once they are identified, addresses are blocked by exchanges. Tornado Cash bypasses this, as a way to legitimize their source of funds by removing connections to a hacked wallet or illicit crypto activity. This has led to backlash from governments, with the US Treasury imposing sanctions on Tornado Cash in August 2022.
Conclusion
Despite the backlash from governments, crypto mixers like Tornado Cash continue to be used by hackers to launder stolen funds. As the crypto community continues to grapple with the implications of these privacy tools, the debate around their use and the responsibility of their creators continues.
