In the midst of the ongoing market downturn, cryptocurrency hackers have seized the opportunity to acquire discounted Ethereum using stolen assets.
On August 5th, hackers involved in the notorious Nomad bridge exploit from 2022 purchased 16,892 Ether (ETH) at considerably reduced prices. This strategic move occurred as Ethereum’s value plummeted by more than 20%, dropping from around $2,760 to $2,172 within just 12 hours, based on data from TradingView.
Buying the Dip with Illicit Funds
Blockchain analytics firm Lookonchain reported that the Nomad bridge hackers utilized 39.75 million stolen Dai (DAI) tokens to make their purchase of 16,892 ETH. Not long after this acquisition, the stolen funds began to be funneled through Tornado Cash, a popular crypto mixing service used to obscure transaction trails. Such services are commonly employed by cybercriminals to prevent tracking and to retain their ill-gotten gains.
Adding further details, blockchain security firm PeckShield observed that the Nomad bridge hacker simultaneously transferred 17.75 ETH to an intermediary Ethereum address. As of the latest updates, about 2,400 ETH, roughly valued at $7 million, had been sent to Tornado Cash. This method of obfuscating the trail underscores the ongoing challenges in tracing stolen cryptocurrencies.
Taking Advantage of Market Prices
In a related development, funds stolen during the Pancake Bunny hack from three years ago have also been mobilized amid current market fluctuations. The hacker, seizing the opportunity presented by lower crypto prices, converted stolen DAI tokens into ETH. However, blockchain investigator Officer CIA noted that 3.6 million DAI was mistakenly sent to a DAI stablecoin address. Pancake Bunny, a decentralized finance (DeFi) protocol on the BNB Smart Chain, had suffered a flash loan attack in 2021.
It’s crucial to highlight the risks involved in sending cryptocurrency to unsupported wallets, which can lead to irreversible losses. On July 8th, the Pancake Bunny hacker managed to launder $2.9 million worth of Ether through Tornado Cash, further complicating efforts to trace and recover the stolen assets.
Conclusion
This series of events highlights the persistent and evolving nature of cyber threats within the cryptocurrency ecosystem. As hackers continually exploit market conditions and utilize sophisticated techniques to launder stolen assets, the importance of robust security measures and vigilant monitoring becomes ever more critical. The ongoing incidents involving the Nomad bridge and Pancake Bunny hacks serve as stark reminders of the vulnerabilities that still exist in the rapidly growing world of decentralized finance and digital currencies.
