A Hacker Turns Stolen Ether into Magic: The Gathering Cards
A hacker has managed to steal over $25 million worth of ether and used Tornado Cash, a cryptocurrency mixing service, to obscure the transaction history. The stolen funds were then spent on collectible Magic: The Gathering trading cards in an attempt to “wash” and cash out the illicit cryptocurrency while avoiding seizure.
Withdrawals and Suspicious Behavior
The hacker withdrew 11,200+ ETH from Tornado Cash, splitting it into 110 batches of 100 ETH across 11 different addresses. The ether was then wrapped, transferred, and unwrapped using WETH to disassociate it from its original source. The cleansed crypto was converted to USDC stablecoins and sent to a Magic: The Gathering broker who accepts crypto payments. The hacker exhibited suspicious behaviors such as overpaying for cards and transacting in person.
Connection to Uranium Finance Exploit
The timing of the withdrawals suggests a possible connection to the $50 million Uranium Finance exploit in April 2021. It is believed that the stolen funds originated from this incident based on deposit patterns.
Washing Stolen Crypto with Magic Cards
The hacker found a way to convert and cash out the hacked funds by funneling them through alternative assets like Magic: The Gathering cards. By using brokers, the perpetrator can conceal their identity and launder cryptocurrency into valuable gaming collectibles without attracting attention. The hacker overpays for the cards to incentivize facilitation while sacrificing some profit for freedom.
Hot Take: Evading Detection with Creative Techniques
This incident highlights the creative techniques employed by cybercriminals to enjoy stolen cryptocurrency without detection. It’s a cat and mouse game between hackers and authorities as both sides adapt and evolve their methods.
By
By
By
By
By
By