The KyberSwap Hacker Moves Funds into Tornado Cash
The hacker responsible for the KyberSwap hack, which resulted in a loss of $48.8 million, has moved funds into Tornado Cash, according to CertiK. Last week, the hacker transferred $338,000 worth of BNB tokens to an account on the Polygon network before moving them to the decentralized cryptocurrency tumbler. The KyberSwap hack stands out not only for the amount of funds stolen but also for the hacker’s unusual demands. Going by the name @Kyber_Director, the hacker demanded full control of the company in exchange for returning the funds.
Kyber Network Vows to Assist Law Enforcement
Kyber Network has pledged to cooperate with law enforcement authorities in tracking down the hacker and recovering the stolen funds. The company has also committed to compensating affected users from its treasury. In a related development, Tornado Cash has faced increased scrutiny due to its alleged use in facilitating illicit fund transfers by hackers and terrorists. Binance recently delisted TRON, Tornado Cash’s native token, following a settlement with the DOJ. As a result, TRON’s price plummeted by almost 45% in one day and has continued to decline despite a market rally.
Hot Take: Tornado Cash Emerges as a Controversial Mixer
Tornado Cash’s involvement in facilitating fund movements by hackers and terrorists has raised concerns and led to delisting actions by major exchanges. The recent move by the KyberSwap hacker to transfer funds into Tornado Cash further highlights these concerns. While Tornado Cash positions itself as a decentralized cryptocurrency tumbler, its association with illicit activities poses reputational risks. As regulators and law enforcement agencies tighten their grip on illicit transactions in the crypto space, mixers like Tornado Cash will face increasing scrutiny and potential regulatory action. This incident serves as a reminder of the ongoing challenges in ensuring security and trust in the decentralized finance ecosystem.
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