Hackers Exploit Ethereum Market Crash: $46 Million Stolen Funds Used to Buy ETH
Cryptocurrency hackers have taken advantage of the recent market downturn to acquire Ethereum at a steep discount. The strategy involves using funds stolen from past cybercrime to make significant investments in digital assets.
Hackers Exploit Ethereum Market Drop
Hackers used the stolen funds starting on August 5, 2022. Nomad Bridge Hack Buy 16,892 ETH. This transaction occurred during a significant decline in the value of Ethereum, which plummeted from around $2,760 to $2,172 in less than 12 hours. The dramatic drop in value provided these illegal actors with a great opportunity to purchase Ethereum at a discounted price.
Stolen Funds Leaked Through Crypto Mixer
According to blockchain analytics firm Lookonchain, the Nomad Bridge hacker used 39.75 million DAI, a stablecoin, to obtain 16,892 ETH. After the purchase, the stolen funds were routed through Tornado Cash, a crypto mixer used to hide the traces of on-chain transactions. This process helps the hacker remain undetected and makes it harder for authorities to trace the stolen assets.
Blockchain research company Peckshield In support of these findings, we note that the hacker also transferred 17.75 ETH to an intermediate Ethereum address, and then moved approximately 2,400 ETH (equivalent to $7 million) to Tornado Cash. This method of moving funds is typical of hackers attempting to launder stolen assets.
Additional hacking and market manipulation
The current market uncertainty has also led other hackers to move their stolen funds. For example, the hacker involved in the Pancake Bunny exploit from three years ago was also active. This individual exchanged the stolen DAI tokens for ETH, but part of the transaction was accidentally sent to an unsupported address.
Pancake Bunny, a decentralized finance protocol on the BNB Smart Chain, suffered a flash lending attack in 2021. The hacker involved in this incident recently used Tornado Cash to steal $2.9 million worth of Ether.