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Hacker sent $500,000 from DAO Maker to Tornado Cash

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Security firms, Peckshield and CertiK, confirm that $500,000 worth of DAI stablecoins was laundered through Tornado Cash on September 9, 2022. The report shows that the funds were from the DAO Maker platform that was hacked in August 2021.

DAO Maker is a crypto-based platform for raising funds built on the Ethereum network. There are more than 175,000 registered users on the DAO Maker platform as on September 10 2022.

Tornado Cash is an open-source, non-custodial platform that enables private transactions by obfuscating details of transactions. 

Tornado Cash uses multiple smart contracts and Zero Knowledge Proof systems to break links between transactions. Therefore, ensuring the privacy of transactions.

This privacy functionality has made the decentralized platform the spot for most fraudulent acts. Stolen funds are transferred into Tornado Cash and redistributed without traceable links.

US sanctions Tornado Cash 

Tornado Cash has been used for several activities similar to the stated situation. On August 19, 2022, $3.3 million was transferred into Tornado Cash by the hacker of Grim Finance.

Another case occurred in September 2022 when $2.1 million from MonoX Finance was moved into Tornado Cash. Peckshield, a blockchain security firm, has been tracing these transactions.

In August 2022, the US Treasury sanctioned Tornado Cash for allowing the laundering of over $7 billion in virtual assets. This has been linked with cyberterrorists like the Lazarus Group.

Despite the sanctions, records show that the platform is still a destination for crypto users.

Read also:

What you should know about DAOs

Tether speaks on Tornado Cash wallet address freeze

 

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2 Comments

2 Comments

  1. Pingback: Hacker sent $500,000 from DAO Maker to Tornado Cash by Chuks Nnabuenyi Jr – CryptoTvplus Events: NFT, DeFi, Bitcoin, Ethereum, Altcoin Events

  2. Pingback: Hacker sent $500,000 from DAO Maker to Tornado Cash #bitcoin #BTC #crypto via @mehabecapital | mehabe

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