Ether Anonymization: HECO Chain Exploiter Conceals $145M
A hacker who exploited the HECO Chain recently carried out a series of transactions to launder stolen Ether using the crypto-mixing protocol Tornado Cash. The hacker transferred around 40,392 Ether (ETH) in total over eight days, making 19 outbound transfers to Tornado Cash addresses. The aim was to make tracing the stolen funds nearly impossible, with the majority of the money sent to a single Tornado Cash address. The largest transaction involved 11,300 ETH, equivalent to over $39.5 million.
Tornado Cash is a popular choice for crypto hackers to anonymize their stolen funds. In a similar incident in March, an account related to a $24 million hack transferred ETH to Tornado Cash. North Korean hackers from the Lazarus Group also resumed using Tornado Cash in March to launder funds stolen from hacks. Tornado Cash itself has faced scrutiny for its alleged involvement in laundering over $1 billion in illicit funds.
The co-founder of Tornado Cash, Roman Storm, and alleged co-conspirator Roman Semenov were charged with various offences, including money laundering and operating an unlicensed money-transmitting business. Storm pleaded not guilty in September 2021. The recent proposal to fund legal defense costs for Storm and Semenov was removed by the Arbitrum DAO, though the reasons for this decision are unclear.
Despite its involvement in illicit activities, Tornado Cash continues to be used as a tool for money laundering in the crypto space. Its ability to anonymize transactions makes it attractive to hackers and those seeking to conceal the origin of their funds. The recent incident involving the HECO Chain exploiter highlights the ongoing challenges faced in combating crypto-related crimes.
4 thoughts on “Ether Anonymization: HECO Chain Exploiter Conceals $145M”
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Pleaded not guilty? That’s just insulting! This person must face the consequences of their actions!
This incident highlights the urgent need for stronger regulations in the crypto space. Let’s work towards a safer and more transparent environment.
I can’t believe the amount of money involved in these transactions! It’s clear that money laundering is a major problem in the crypto space.
Money laundering remains a persistent challenge, but each incident brings us closer to understanding and addressing the loopholes in the system. Let’s learn from this and adapt.