Hacker Moves $3.3M in ETH from Poloniex to Tornado Cash: Crypto Security Concerns Rise

• The hacker responsible for the November 2023 attack on cryptocurrency exchange Poloniex has recently transferred over 1,100 Ether (ETH) to the sanctioned crypto mixer Tornado Cash.
• The hacker still holds over $180 million worth of assets across different blockchains, including Ether, TRX, Bitcoin (BTC), BTCT, and Floki.
• Despite being sanctioned by the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC), Tornado Cash continues to be used by cybercriminals to obfuscate transaction trails.

The hacker behind the 2023 Poloniex attack has moved over 1,100 ETH to Tornado Cash, a crypto mixer sanctioned by the OFAC. The hacker still holds assets worth over $180 million across various blockchains.

Poloniex Hacker Moves 1,120 ETH to Tornado Cash

As per data from Arkham Intelligence, the hacker responsible for the Poloniex breach transferred 100 ETH in 11 batches to Tornado Cash, totaling 1,100 ETH (valued around $3.37 million). Additionally, two more transfers of 10 ETH (approximately $61,400) were made on May 7, all within four hours. The hacker also moved 501.62 BTC (around $32 million) on April 30 to an unknown Bitcoin address. The hacker’s portfolio, which includes Ether, TRX, Bitcoin (BTC), BTCT, and Floki, is currently valued at $181.3 million, with Ether being the largest holding.

Tornado Cash: A Tool for Cybercriminals

Despite being sanctioned by the OFAC in August 2022, Tornado Cash continues to be used by cybercriminals to obfuscate transaction trails. The US Treasury has stated that the crypto mixer was used by groups like North Korea’s Lazarus Group to launder stolen funds. Developers behind Tornado Cash are facing allegations of money laundering and sanctions violations. Alexey Pertsev, one of the arrested developers, is accused of laundering $1.2 billion in crypto through the mixer. Roman Storm, another developer, pleaded not guilty to laundering over $1 billion in stolen crypto funds, while a third developer, Roman Semenov, remains at large.

Conclusion

The recent activity of the Poloniex hacker highlights the ongoing use of crypto mixers like Tornado Cash by cybercriminals, despite sanctions and legal actions. The incident underscores the need for enhanced security measures within the crypto space and stricter regulatory oversight of tools that can be exploited for illicit activities.