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Poloniex Hacker Transfers Stolen Funds to Tornado Cash
The notorious Poloniex hacker responsible for last year’s security breach on the cryptocurrency exchange is on the move again. The thief transferred 1,100 Ethereum (ETH), valued at $3.4 million, to the sanctioned crypto mixer Tornado Cash on May 7 in an effort to launder the stolen funds.
Details of the Transfer
- The ETH tokens were transferred to Tornado Cash in 11 batches of 100 ETH each.
- The hacker utilized Tornado Cash for the first time to launder the stolen funds.
About Tornado Cash
Tornado Cash is a privacy tool that breaks the link between a user’s crypto deposit and wallet address through a process known as “crypto mixing.” It pools and anonymizes transactions, allowing users to withdraw funds to a new wallet and protecting their financial privacy.
Controversy Surrounding Tornado Cash
The service is illegal in the US and has been flagged by the Treasury following its association with the North Korean Lazarus Group. The mixer’s founders are also facing money laundering charges in the US.
Related Developments
Additional Crypto Transfers
Another address associated with the Poloniex hacker transferred 501 BTC, worth roughly $32 million, to three new wallet addresses.
Total Crypto Assets Held by the Hacker
The Poloniex hacker now holds a total of $181.7 million worth of crypto assets across several blockchains, including ETH, TRX, BTC, and FLOKI.
Background on Poloniex Security Breach
It could be recalled that the Poloniex exchange suffered a breach on November 10, resulting in a loss of over $33 million. The hacker stole assets such as ETH and LINK tokens worth millions of dollars.
FBI Warning Against Illegal Crypto Hubs
On April 25, the Federal Bureau of Investigation (FBI) cautioned Americans against using cryptocurrency money-transmitting services not registered as Money Services Businesses (MSBs). The agency disclosed that it had taken law enforcement actions against such services operating without proper licensing.
This alert from the FBI has sparked varied reactions within the cryptocurrency community, with some perceiving it as a protective measure and others criticizing it as an attempt to limit financial freedom.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
