$15M Stolen From Crypto.com And Laundered With ‘Ethereum Mixer’

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a group of hackers what did he take approximately 15 million dollars JanCrypto.com’s thereum is attempting to launder the funds through a “mixer” of Ethereum known as Tornado Cash, according to a crypto security company report Peck Shield. Mixers interfere with the blockchain to make it difficult for strangers trace where they’ve ended up the stolen funds.

Crypto.com suspended all withdrawals of the platform for 14 hours Monday and made users reset their authentication of two factors after “unauthorized activity” was detected on the network. The Platform Executive Director, KRis Marszalek, insisted that all funds were “safe”, without admitting that the company had been hacked.

The laundering attempt, notified first for CoinDesk, it may look on the Ethereum blockchain through the service etherscan. hackers sent 334 transactions to Tornado Cash on Monday night. It’s unclear where the money ultimately landed. At least not yet.

The nature of decentralized finance (DeFi) on the blockchain means that it is relatively easy to see how money moves from a wallet cryptographic to another, even even if you don’t know who are the owners of the wallets. but they exist services like TornadoCash that are sold as a way to obfuscate register public domain of a given blockchain, in this case Ethereum, to confuse to the curious and protect user privacy.

Other crypto “mixers” They have closed in recent years. Bestmixer stopped its operations in 2019 after a visit by European police who alleged that it had laundered about 200 million dollars in bitcoin, and Larry Dean Harmon, who ran the Helix mixer, was raided by the FBI in 2021. Harmon pleaded guilty in August of laundering $300 million in crypto.

Crypto.com did not respond to a request for comment on the hack., even if had previously declared that “all funds are safe”. But there is a big difference between not being hacked (something Crypto.com keeps suggesting with their confusing choice of words in public statements) and getting hacked but recharge the accounts of customers who lost money. East seems to be the case, but Crypto.com won’t admit it, likely fearing that bad publicity about poor security practices in the crypto space will lead to crypto prices crashing.

The crypto community has already had a rocky start to the year, with Bitcoin falling 37% in the last three months. Bitcoin is currently trading at $41.347, down considerably from an all-time high of over $68.000 on Nov 9, 2021. Ethereum is currently trading at $3,066, down from $4,806 on Nov 9.

While services like Tornado Cash, which has its own crypto currency called TORN, make it harder to track where funds are being routed, probably not impossible for savvy folks track the money In fact, experts speculate that any transactions currently taking place with Tornado Cash could be audited in the future.

“I wouldn’t be surprised if there is a paper at the Financial Cryptography 2023 conference showing that 85% of Tornado usage was not private; not because the crypto is broken, but because it’s really hard for mere mortals to use something like Twister (or CoinJoin or other similar technologies) in a way that does not leak information about your portfoliocrypto expert Gavin Andresen wrote in January 2020.

“The developers of Twister wrote an article with tips to help maintain privacy, but I think the 62% of your users will not read it and another 25% will read it and immediately do something the article says not to do,” he continued. Andresen.

It is very possible that hackers who took around $15 million in ether get away with it. But they would not be the first. It is estimated that hackers they stole $3.2 billion in crypto during 2021, according to chain analysis. but that number pales in comparison to cryptocurrency scams, which raised roughly $7800 million in 2021.

hackers they could be winning a lot of money by breaking into bank vaults. But it is often more profitable to just walk in the front door, look like a cryptocurrency project reputable and ultimately pull the rug.

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