Raydium Hackers used Tornado Cash to move $2.7 million in stolen Ethereum.
The money was stolen in December 2022 during a hack of the decentralized exchange Raydium.
On January 19, $2.7 million in ether (ETH) was laundered through Tornado Cash by an Ethereum address linked to a Raydium hack, according to security firm CertiK.
The Solana blockchain-based decentralized exchange Raydium, which was hacked in December, lost about $4.4 million in various assets. The admin account keys that operate Raydium’s smart contracts were compromised, allowing the hacker to take control of the liquidity pool (LP) tokens. The funds were eventually transferred by the hacker to Ethereum.
More than a month after the event, a transfer of $2.7 million in stolen funds was transferred to an address identified by Etherscan as Raydium’s exploiter. Tornado Cash is a popular choice among hackers since it enables them to hide the transaction history.
Due to its sanctions by the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department, Tornado Cash has been in the news since last year.
All US-based individuals and organizations are not permitted to use the app as a result of the restrictions due to the app’s potential for money laundering.
Tornado Cash has kept on being frequently used by hackers of decentralized finance protocols even after the sanctions were announced.