In a recent turn of events following the infamous Poloniex hack that resulted in the theft of $125 million, the hacker behind the breach has made some interesting moves in the cryptocurrency space. According to blockchain data, the hacker sent 1,100 ether (ETH) equaling roughly $3.3 million to the sanctioned coin mixer Tornado Cash in 100 ETH batches over a two-hour period.
The transfer of the ether to Tornado Cash was notable not only for its timing but also for the fact that the funds had been dormant for a staggering 178 days. This move raises questions about the motives behind the hacker’s decision to mix these stolen assets and the potential implications it may have on the traceability of the funds in the future.
Additionally, the hacker also transferred 501 bitcoin (BTC) worth $32 million to an unlabelled wallet last week, further complicating the already convoluted web of stolen funds. With a total of $181 million worth of crypto spread across various blockchains, the hacker seems to be actively managing and moving the stolen assets to evade detection and potentially cash out in the future.
It is worth noting that Tornado Cash, the coin mixing service that received the ether from the hacker, has been under scrutiny for its involvement in money laundering schemes in the past. The U.S. Treasury Department sanctioned Tornado Cash in 2022 after it was used by the North Korean hacking group Lazarus to hide funds obtained from the $625 million Axie Infinity exploit.
In a similar scenario earlier this year, the Lazarus Group used Tornado Cash to launder $12 million from the Heco Bridge hack, which bears stark similarities to the Poloniex hack in terms of the laundering of stolen funds. These incidents underscore the ongoing challenges faced by law enforcement agencies in tracking and recovering stolen cryptocurrency, especially when sophisticated tools like Tornado Cash are used to obfuscate the origins of illicit funds.
As the hacker behind the Poloniex breach continues to move and mix the stolen assets, it remains to be seen how authorities and blockchain analysts will respond to these developments. The use of coin mixers like Tornado Cash poses a significant challenge in tracing and recovering stolen cryptocurrency, highlighting the need for enhanced regulatory oversight and collaboration between industry stakeholders to combat financial crimes in the digital asset space.
Overall, the latest activities by the Poloniex hacker serve as a stark reminder of the evolving landscape of crypto-related crimes and the ongoing efforts to mitigate the risks associated with such illicit activities. As the investigation into the Poloniex hack continues, it will be crucial for regulators and industry players to work together to address the challenges posed by sophisticated money laundering techniques in the world of decentralized finance.