Four Hackers behind the latest hacking schemes have collectively laundered $49.3 million worth of Ethereum in the first week of September using crypto mixer Tornado Cash.
These four hackers responsible for exploiting crypto exchange Wazir X, DeFi protocols Penpie and LiFi, and crypto entrepreneur Bo Shen moved the stolen Ethereum assets through much criticized Crypto mixer Tornado Cash.
Spot on chain data revealed that this activity by the hackers took place between September 1 and September and it involves the funneling of 20,561 ETH worth $49.3 million through the banned Tornado cash.
The Onchain activity of these hackers affected the price of Ethereum causing it to drop below $2,200 and casting a shadow on the long-term potential of the crypto asset. Ethereum however has other problems besides the sell pressure created by the hackers.
The Hackers Onchain Activity
The four hackers in question despite all moving Ethereum employed different strategies in their dealings.
The Penpie hacker laundered all his or her stolen assets at once moving 11,261.2 ETH, worth $26.72 million, through crypto mixer Tornado Cash. The employment of Tornado Cash by this hacker removed all doubts that the hacker was a White hat hacker.
The Penpie team has offered a 10% bounty offer to anyone who can help retrieve the stolen funds.
The Penpie hacker was praised and encouraged by an address that stole $193 million from Euler Finance in March 2023 but returned the stolen funds. The address urged the Penpie hacker not to return the stolen funds as he did in 2023.
The Wazir X hacker on the other hand is applying a slow and steady approach in his laundering of the stolen assets. The Wazir X hacker has not laundered all his stolen assets partly because of the size of the assets. The hacker stole $230 million worth of ERC 20 tokens from the exchange which happens to be India’s biggest exchange.
Selling Pressure by Hackers Pushes Down Ethereum Price
Ethereum has become the 18th worst-performing asset over the last 30 days following sell pressure caused by hacker’s on-chain activity. The crypto asset has declined by 13% over the first week of September which coincides with the hackers laundering $49.3 million worth of Ethereum over the same time frame.
What to Know
- Tornado Cash has become a hotbed resource for bad actors in the industry. The crypto tool which was banned in the US has received up to $1.8 billion in the first half of the year highlighting the ineffectiveness of the Ban on the crypto mixer.
- Wazir X’s team placed a bounty on their stolen assets promising 10% of the loot to any white hat hacker who can help recover the stolen asset.
