In an alert, blockchain security firm CertiK reported that the Raydium protocol exploiter had sent 1,774.5 Ether (ETH) to the mixer. The amount is valued at around $2.7 million at the time of writing.
As security teams from various exchanges continue to combat hacker efforts, funds continue to flow to sanctioned cryptocurrency mixer Tornado Cash.
#CertiKSkynetAlert
We see ~1,774.5 ETH (~$2.7 million) being deposited into @TornadoCash by the Raydium exploiter 0xb98ac as stated on https://t.co/lb2v6r8c4s.
Stay alert! pic.twitter.com/JVqWAw9MVO
— CertiK Alert (@CertiKAlert) January 19, 2023
The attack on the Solana-based decentralized finance protocol (DeFi) took place back on December 16, 2022. According to the developers, the hackers took control of the exchange owner’s account and drained the liquidity provider’s funds, which consisted of various digital assets such as USD Coin (USDC), Wrapped Solana (wSOL), and Raydium (RAY).
After the initial investigation, the DeFi protocol determined that the exploit was due to a vulnerability in the decentralized exchange’s smart contracts. This allowed admins to withdraw liquidity pools as fees.
Due to the losses, the Raydium team also proposed a plan to compensate victims of the hacks, using the decentralized autonomous organization’s treasury to buy missing tokens and compensate those affected by the exploit.
In a report published on Jan. 9, blockchain analytics firm Chainalysis pointed out that while tornado cash sanctions have had some impact on the mixer, no organization can “pull the plug” compared to centralized services. While the website can be shut down, the smart contracts can run indefinitely, highlighting that anyone can continue using them at any time.
Related: Balancer warns some LPs to remove liquidity ASAP due to a “related issue”.
While hackers continue to actively move money, it doesn’t always end up in profit for them. Recently, centralized crypto exchanges Binance and Huobi were able to detect and freeze funds deposited by the Harmony One hackers. Binance CEO Changpeng Zhao reported that their security team worked with Huobi to recover 121 Bitcoin (BTC) from the hackers, which was valued at $2.5 million at the time.
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