April

Tornado Cash

Tornado

After six months those responsible for the $25 million Kronos Research exploit have begun transferring the pilfered funds. 
Blockchain security firm PeckSheild <a href="https://x.com/PeckShieldAlert/status/1787726644767252886" target="_blank" rel="">flagged</a> the move on May 7, noting that the hackers were directing the funds towards the mixing platform Tornadocash. 
Tornado Cash is an open-source platform designed to mix crypto funds from multiple sources, which makes it difficult to track the origin of the assets. The platform, often used by bad actors to launder ill-gotten gains, has drawn significant criticism from regulators. 
While some tout it as a tool to <a href="https://crypto.news/?s=Tornado+cash#:~:text=NSA%20whistleblower%20urges%20support%20legal%20defense%20for%20Tornado%20Cash%20developer" rel="">empower user privacy</a>, the U.S. Department of the Treasury’s Office of Foreign Assets Control imposed sanctions on its use in August 2022.&nbsp; 
Despite sanctions, the platform continued to be a go-to for bad actors, laundering more than <a href="https://crypto.news/crypto-mixer-tornado-cash-laundered-over-550m-in-2023-despite-sanctions/" rel="">half a billion dollars</a> worth of crypto in 2023 alone. 
The platform’s creators have also been charged with laundering stolen crypto assets. However, they have denied the allegations and have moved to <a href="https://crypto.news/tornado-cash-co-founder-claps-back-laundering-charges/" rel="">dismiss them</a>. 
 You might also like: <a href="https://crypto.news/crypto-mixer-tornado-cash-laundered-over-550m-in-2023-despite-sanctions/" rel=""> Crypto mixer Tornado Cash laundered over $550m in 2023 despite sanctions </a> 
The Kronos Research hacker initially moved 1,314 Ether to a new address, starting with <a href="https://etherscan.io/address/0x8f5e419558422bc4be6c15f61939629f6463950e" target="_blank" rel="">0x8F5e4</a>. At the time of the move, the stash was valued at approximately $4 million. 
After this, the funds were moved to another wallet identified by <a href="https://etherscan.io/address/0x164a24bf02c8573942b8f066e7e25341b02fd5c4" target="_blank" rel="">0x164A24b</a>. This wallet was then used to initiate 10 transactions for 100 ETH each, and the funds were sent to the crypto-mixing platform. 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/CHrmRwRhnd1NSK6gC_iuIJaBcOBDea2VqX3P52BVyIiPMIsL8ArJx5adRYz0I8k7n1Sp_uQn1l-kCqItiFqHT0RuW5aqeh_3cbBq3bT5qgM3OL5fAdDeVmbzsRtrAL9X1bWDZOv8KDp4yRipRZm1tOc" alt="Kronos Research hacker starts laundering funds on Tornado Cash - 15">
 <figcaption class="wp-element-caption">
 Hacker transferring funds to Tornado Cash | Source: Pecksheildalert on X
 </figcaption>
</figure> 
Kronos Research initially disclosed the exploit on Nov. 18. The <a href="https://crypto.news/kronos-trading-firm-suffers-security-breach-losses-25m/" rel="">attack</a> was confirmed by on-chain investigator ZachXBT, who flagged notable Ether outflows from a linked wallet. It was later discovered that the hackers employed stolen API keys to execute the attack. 
The Taiwan-based firm also <a href="https://crypto.news/kronos-research-negotiates-with-hacker-over-26m-theft/" rel="">attempted</a> to negotiate with the hacker days after the attack transpired. A bounty of 10% was offered under the condition that the remaining 90% of the funds be returned, but to no avail. 
Since the start of 2024, there have already been <a href="https://crypto.news/prisma-finance-hack-stablecoin/" rel="">multiple attacks</a> in the crypto space. Interestingly, recent reports suggest a notable decline in the trend, with April witnessing a <a href="https://crypto.news/losses-from-crypto-hacks-drop-67-to-60m-in-april/" rel="">67% drop</a> in crypto thefts from March. 
Similarly, March 2024 also recorded a <a href="https://crypto.news/crypto-losses-due-to-hacks-decreased-nearly-50-in-march-peckshield-says/" rel="">50% drop</a> in crypto losses due to hacks compared to February. 
 Read more: <a href="https://crypto.news/south-korea-to-strengthen-control-over-crypto-mixers/" rel=""> South Korea to strengthen control over crypto mixers </a>

Kronos Research hacker starts laundering funds on Tornado Cash

crypto.news

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