As the cryptocurrency market reeled from a massive crash, on August 5th, hackers seized the opportunity to buy Ethereum at a deep discount. Ethereum’s value plummeted by over 20% within 12 hours according to analytical data, dropping from approximately $2,760 to $2,172. This dramatic fall created a fertile ground for opportunistic crypto hackers to deploy their stolen assets.
The blockchain analytics firm Lookonchain reported that the hackers behind the Nomad bridge exploit from August 2022 utilized 39.75 million DAI in stolen tokens to purchase 16,892 ETH. Immediately following the transaction, these crypto hackers began laundering the stolen funds through Tornado Cash, a popular crypto mixing service designed to obfuscate the origins of cryptocurrency and impede on-chain tracking.
Crypto Hackers: The Nomad Bridge Exploit
The Nomad bridge hack was one of the significant breaches in 2022, leading to the loss of millions in cryptocurrency. The recent activity by these crypto hackers, using the stolen funds to buy Ethereum, highlights the ongoing issues surrounding security and accountability in the crypto space. The funds, now in the form of Ethereum, are being funneled through Tornado Cash, making it increasingly difficult to trace their final destination.
Blockchain security firm PeckShield added that the Nomad hackers concurrently moved 17.75 ETH to an intermediary Ethereum address. As of this writing, the hackers have transferred approximately 2,400 ETH, worth about $7 million, to Tornado Cash, effectively laundering a significant portion of their ill-gotten gains.
The use of stolen funds to buy discounted cryptocurrency is not limited to the Nomad bridge hackers. Funds linked to the Pancake Bunny hack from three years ago are also in motion, according to reports, leveraging the current market uncertainty to convert stolen DAI tokens into Ethereum. This maneuver by crypto hackers illustrates a calculated effort to maximize the value of their stolen assets during times of market instability.
According to blockchain investigator Officer CIA, the Pancake Bunny hackers attempted to swap 3.6 million DAI for Ethereum but mistakenly sent the funds to a DAI stablecoin address. Pancake Bunny, a decentralized finance protocol on the BNB Smart Chain, suffered a flash loan attack in 2021, resulting in significant financial losses.
Despite this misstep, the Pancake Bunny hackers have not been deterred. On July 8, they managed to siphon $2.9 million worth of Ether through Tornado Cash, continuing their exploitation of the market’s vulnerabilities.
Crypto Hackers: The Persistent Threat
These incidents highlight the persistent threat posed by crypto hackers and the sophisticated methods they employ to launder stolen funds. The use of services like Tornado Cash complicates efforts to track and recover stolen assets, making it an ongoing challenge for blockchain security firms and law enforcement agencies.
Moreover, the movement of stolen funds from high-profile hacks like Nomad bridge and Pancake Bunny serves as a stark reminder of the vulnerabilities within the crypto ecosystem. Despite advancements in blockchain security and the implementation of stricter regulations, hackers continue to find ways to exploit weaknesses and profit from their illegal activities.
As the crypto market continues to evolve, the actions of crypto hackers underscore the need for enhanced security measures and robust protocols to safeguard digital assets. The recent purchase of 16,892 ETH using stolen funds is a clear indication that hackers will continue to exploit market conditions to their advantage.
In light of these events, it is crucial for stakeholders in the cryptocurrency space to prioritize security and work towards creating a safer environment for all participants. The ongoing efforts to track and recover stolen funds, while challenging, remain vital in the fight against cybercrime in the crypto world.
For more updates on this development and the general happenings in the cryptocurrency world, stay tuned to TurkishNY Radio.
