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<ul>
 <li>$2.3M USDT was stolen from two wallets due to a key compromise</li>
 <li>Stolen funds were swapped for 757.6 ETH</li>
 <li>Funds were laundered via Tornado Cash, says PeckShield</li>
</ul>
<p>In another troubling sign of persistent security risks in the crypto space, two wallets have reportedly lost a combined <strong>$2.3 million in USDT</strong> following a private key compromise. Blockchain security firm <strong>PeckShield</strong> broke the news, revealing that the stolen funds were rapidly converted into <strong>757.6 ETH</strong> and subsequently funneled through the controversial privacy mixer, <strong>Tornado Cash</strong>.</p>
<p>This method of laundering funds has become a go-to for attackers looking to obfuscate stolen assets, despite increased regulatory scrutiny and sanctions on Tornado Cash.</p>
<h2 class="wp-block-heading" id="how-the-attack-unfolded">How the Attack Unfolded</h2>
<p>According to PeckShield’s on-chain investigation, the attack began when the attacker gained access to the private keys of two wallets holding large USDT balances. After securing access, they executed a swap, converting the stablecoins into ETH — a common practice to avoid blacklisting by issuers like Tether.</p>
<p>The resulting <strong>757.6 ETH</strong>, worth approximately the same as the stolen USDT, was then routed through <strong>Tornado Cash</strong>, making it much harder to trace and recover.</p>
<p>While the identity of the wallet owner or the method of the private key leak is unknown, this incident highlights the critical importance of <strong>private key security</strong> and <strong>wallet management best practices</strong>.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  <blockquote class="twitter-tweet">
   <p>ALERT: Two wallets lost $2.3M USDT after a private key compromise; funds were converted to 757.6 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a> and sent through Tornado Cash, per PeckShield. <a href="https://t.co/Pj7DD8bKzu" rel="noopener noreferrer nofollow">pic.twitter.com/Pj7DD8bKzu</a></p>— Cointelegraph (@Cointelegraph) <a href="https://twitter.com/Cointelegraph/status/2003450582917316761?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">December 23, 2025</a>
  </blockquote>
 </div>
</figure>
<h2 class="wp-block-heading" id="growing-use-of-tornado-cash-despite-sanctions">Growing Use of Tornado Cash Despite Sanctions</h2>
<p>Despite facing U.S. sanctions, <strong>Tornado Cash remains a tool of choice for laundering stolen crypto</strong>. This attack adds to a growing list of hacks and exploits where attackers have used the protocol to obscure the trail of funds.</p>
<p>Security experts continue to warn against storing large amounts of crypto in hot wallets or using weak private key storage solutions. As 2025 closes out, this serves as yet another reminder that in crypto, self-custody comes with high responsibility.</p>
<h4 class="wp-block-heading">Read Also :</h4>
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</ul>
<p>The post <a rel="noopener noreferrer nofollow" href="https://coinomedia.com/usdt-stolen-via-tornado-cash/">$2.3M USDT Stolen in Key Hack, Laundered via Tornado Cash</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinomedia.com">CoinoMedia</a>.</p>

$2.3M USDT Stolen in Key Hack, Laundered via Tornado Cash

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