Ethereum

Tornado Cash

Tornado

<p>In an astonishing turn of events, an anonymous user on the OpenSea NFT marketplace has purchased a CrypToadz nonfungible token (NFT) for an eye-popping $1.6 million, equivalent to 1,055 Wrapped Ethereum (wETH). This purchase has left the crypto community puzzled, given that the average price for CrypToadz NFTs typically doesn’t exceed $1,000. The transaction took place on October 9, 2023, and has ignited a wave of speculation about its legitimacy and the origin of the funds involved.</p>
<p>The NFT in question is part of the CrypToadz collection, which features small, warty, amphibious creatures and was created by the pseudonymous digital artist Gremplin. Interestingly, this particular NFT was acquired just two weeks prior for a mere 0.95 ETH, roughly equivalent to $1,600. The drastic increase in value, amounting to a thousandfold, has naturally raised eyebrows within the <a href="https://www.cryptopolitan.com/custodial-vs-non-custodial-nfts-insights/" rel="noopener noreferrer nofollow">NFT</a> community.</p>
<p>Adding another layer of complexity to this transaction is the source of funds. The purchase was funded through a digital wallet that has been linked to a chain of transactions anonymized by the Ethereum coin mixing service Tornado cash</p>
<h2 class="wp-block-heading" id="tornado-cash-s-controversial-role-in-nft-transactions">Tornado cash’s controversial role in NFT transactions</h2>
<p>The use of Tornado Cash in this transaction has raised concerns about the origin and legitimacy of the funds involved. Tornado Cash has been associated with various instances of fundwashing, and its reputation has come under scrutiny due to its role in obfuscating the source of funds. Notably, in July 2023, nearly $60 million in Ether, which had been stolen from AnubisDAO two years earlier, was funneled through Tornado Cash. The person responsible for the theft divided and transferred the stolen funds into 100 ETH transactions, further highlighting the potential misuse of the service.</p>
<p>The crypto community is divided in its interpretation of this extraordinary NFT purchase. While some on Twitter have <a href="https://twitter.com/0xTexasHedge/status/1711440421501485167" rel="noopener noreferrer nofollow" target="_blank">suggested</a> that it might have been a “fat finger mistake” during the transaction, others are suspicious of the possibility of wash trading.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">The purchasing wallet was funded by a wallet that has been pulling money out of Tornado Cash<a href="https://t.co/nNhKvSVhoz" rel="noopener noreferrer nofollow" target="_blank">https://t.co/nNhKvSVhoz</a> <a href="https://t.co/aInHO8vNyG" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/aInHO8vNyG</a></p>— TexasHedge (@0xTexasHedge) <a href="https://twitter.com/0xTexasHedge/status/1711440421501485167?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">October 9, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Wash trading involves the manipulation of market prices by repeatedly buying and selling an asset to create the illusion of high trading volume and inflate its value. It can also serve as a means to legitimize funds of questionable origin through a convoluted series of transactions and exchanges.</p>

Mysterious $1.6M Purchase of CrypToadz NFT Raises Eyebrows

Table of Contents

Cryptopolitan_News

Other articles published on Oct 10, 2023

Top Reasons Why XRP Price May Trigger a Bull Run Prior to the Other Major Cryptos in the Market

Deepfake of Keir Starmer Highlights AI’s Threat to Democracy

Lumen To Announce Its Earnings, Will LUMN Stock Hit $2 Levels?

Flare integrates Subsquid over open-source data access expansion

Bitkeep unveils new partnership with Sunflower Land

SBF ‘Directed Me’ to Commit Fraud: ex-Alameda CEO Caroline Ellison

Join our free newsletter for daily crypto updates!