Data from Etherscan shows that sifu.eth — an address that is believed to be linked to Michael Patryn — has sent 2,000 ETH to Tornado Cash, worth $5.5 million at current rates.
The man at the heart of a DeFi protocol's spectacular collapse has started laundering crypto through a coin mixer.
Patryn had been serving as the treasury manager for Wonderland, causing a backlash among users. The embattled project is now set to close after a significant number of investors asked to get their funds back in a community vote.
"It is impossible to determine with certainty whether the scammer is in control of the address, but given the particular case, it is likely."
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A Huge Setback for DeFi
Until 0xSifu was effectively doxxed on Twitter, Wonderland users had no way of knowing that he had been convicted for financial crimes. As SushiSwap member Tyler Benster told Bloomberg on Friday:
"There's huge reputational damage being done by projects like Wonderland to some of the actual innovations of decentralization."
The debacle has contributed to the Bloomberg Galaxy DeFi Index plunging to a record low — a level that has not been seen since it launched back in August 2021.