Theft Linked to Poloniex and Kronos Research: Hackers Transfer $7.3M to Tornado Cash 🔒
Hackers associated with the thefts at Poloniex and Kronos Research have recently moved more than $7.3 million into the controversial crypto mixer Tornado Cash. This highlights the ongoing security vulnerabilities and challenges in regulatory oversight within the crypto sector.
On-Chain Data Reveals Crypto Hackers’ Transactions
Blockchain analysis reveals that the hackers responsible for the November theft from Poloniex, involving $117 million, have transferred funds to Tornado Cash in batches of 100 Ethereum (ETH). These funds, worth approximately $3.3 million, were inactive for nearly six months before the recent transaction.
- The hackers involved in a separate incident at Kronos Research moved 200 ETH directly to Tornado Cash
- Transferred around 1,314 ETH (valued at $4 million) to a new crypto wallet — 0x164
- The funds have started moving to Tornado Cash, with the current balance at 314 ETH, equivalent to approximately $962,000
Crypto Mixer Tornado Cash under Scrutiny ⚠️
The platform utilized by the hackers, Tornado Cash, is designed to obscure the origins of crypto assets by blending them across various wallets over time. However, the platform was sanctioned by the US Treasury in 2022 due to its association with a North Korean hacking group, Lazarus. This group used Tornado Cash to launder money from a $615 million exploit known as the Ronin bridge heist.
- The US Department of Justice has levied charges against Tornado Cash developers, Roman Storm and Roman Semenov
- Charges include conspiracy to commit money laundering and operating an unlicensed money transmitter
- The DOJ argues against dismissing charges, emphasizing the need for a jury to determine the nature of Tornado Cash’s services
The DOJ vs. Tornado Cash Developers: Legal Battle Escalates ⚖️
The DOJ’s recent filings challenge the claim that Tornado Cash was not a money-transmitting business due to a lack of fund control. The legal team argues that the definition of ‘money transmitting’ in Section 1960 extends to ‘transferring funds on behalf of the public by any means,’ not necessarily requiring control of the funds being transferred.
“The definition of ‘money transmitting’ in Section 1960 does not require the money transmitter to have ‘control’ of the funds being transferred. The definition extends to ‘transferring funds on behalf of the public by any and all means,” the DOJ legal team argued.
Hot Take: Stay Cautious and Informed in the Crypto Space 🔒
As a crypto enthusiast, it’s crucial to stay vigilant and informed about the latest developments and security concerns in the industry. The recent incidents involving thefts at Poloniex and Kronos Research underscore the importance of maintaining robust security measures and adhering to regulatory standards.
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