Deribit Hackers Move Stolen ETH to Blacklisted Mixing Service, Tornado Cash

Deribit Hackers Move Stolen Ether (ETH) to the Blacklisted mixing service, Tornado Cash

The hackers behind the $28 million theft from the Panama-based crypto exchange, Deribit, have begun moving the stolen Ethereum (ETH) to the sanctioned crypto coin mixing service, Tornado Cash.

Deribit Hackers Move ETH to Tornado Cash

On November 1st, the hot wallet of Deribit, a leading cryptocurrency derivatives exchange was compromised, with the attackers siphoning Bitcoin (BTC), ETH, and USD Coin (USDC).

According to on-chain data, the unknown culprits behind the Deribit exploit are now transferring stolen funds using Tornado Cash, the infamous decentralised cryptocurrency mixer.

Data from the Ethereum block explorer Etherscan shows that the exploiters used 17 transactions to move a total of 1,610 Ether, worth around $2.5 million, to Tornado Cash. 

The first transaction on November 5th was $350,000. With only $2.5 million moved, at least $25.5 million worth of cryptocurrencies from the Deribit exploit remains to be tracked.

Possible Effects on Tornado Cash

On August 8, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash for its association with more than $7 billion worth of stolen funds. 

However, the crypto advocacy group Coin Center filed a complaint against OFAC for blacklisting Tornado Cash. The use of the service once again highlights the reason why the coin mixing service was sanctioned.

On the Flipside

  • In the aftermath of the hack, Deribit performed a security check, resumed withdrawals and promised to cover all the losses its users suffered.

Why You Should Care

The continuous use of Tornado Cash by crypto hackers and fraudsters only solidifies the claims of regulators.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).