Yearn DeFi Hacker Launders $11.6M through Tornado Cash
The post Yearn DeFi Hacker Launders $11.6M through Tornado Cash appeared first on Coinpedia Fintech News
Yearn Finance Protocol’s old version was hacked last month and the hacker stole $11.6M in Stablecoins. The exploiter transferred $3.6M worth of 2000ETH to Tornado Cash in recent transactions. Peckshield, a Blockchain Analytics Firm stated that the exploiter taking funds to varied addresses and dispelling them to Tornado Cash. The laundering was nearly worth $9.3B by the hacker via transactions on Tornado Cash.
FTX Hacker Can be Caught Now! Here’s Who Might Reveal the Hacker’s Identity
FTX is making huge headlines in recent times as it has shaken the entire crypto space. Bitcoin & altcoins have witnessed a massive drop of an average of 10% to 15%. Moreover, when the assets were hacked and swapped for ETH & DAI, the markets witnessed a fresh plunge, marking new lows.
While many speculations were around about the identity of the hacker, he/she may be an insider trying to accumulate the remaining funds, labelling it as a ‘hack’. But the real identity of the hacker may not be a secret for a longer time.
Oxscope, the very first Web3 knowledge graph protocol in its recent tweet claims to have a smart money address that can track the activity of the hacker. Interestingly, the platform affirms that the address used by the hacker belongs to the Binance exchange.
The platform unveiled the activity of the suspicious address that transferred USDC to Binance. Hence it may be assumed that the Binance exchange may have the KYC of the address and hence could reveal the identity of the hacker.
Alongside, they also revealed that they found an address that always borrows more than $10 million UDSC tokens against ETH and deposits it to the exchange. This happens each time before the hacker dumps ETH, and Binance should be aware of this.
However, Binance is yet to clarify its stand, as it continues to remain silent on the new findings. As a centralized exchange, the platform needs to have the details of the hacker and check them with its KYC. Therefore, the exchange is expected to clear up the rumours before they worsen.
FTX Hacker Finally Starts Liquidating Huge Amount Of Ethereum!
The 2nd largest digital asset in terms of market capitalization seems to get trapped amid the ongoing FTX-Alameda drama as the collapse of FTX and its hack of the security system of over $600 million worth of crypto funds has led to a scarcity in circulation. The FTX hacker has exploited millions of dollars of Ethereum from FTX to the drainer account and is now slowly liquidating all the holdings to create a significant dump for Ethereum’s price.
80K Ethereum Gets Liquidated By The FTX Hacker
Being the 35th largest Ethereum whale holder, the exploiter has now taken the responsibility to create a massive price dump in Ethereum by slowly selling off his ETH holdings. It is reported that the hacker holds nearly $300 million worth of Ethereum, and a decision to liquidate all the funds may lead to a massive crash in the crypto market.
An on-chain data provider, LookonChain, recently revealed through a Twitter thread that the FTX hacker has started converting ETH. According to the firm, the FTX account drainer address has transferred 50K Ethereum ($60 million) to an address starting with ‘0x866e,’ from which the hacker may proceed in cashing out the funds.
Moreover, the hacker also swapped 30,990 Ethereum for 2197.5 renBTC, and 1070 BTC have been transferred to the BTC network. Hacker cross-chains renBTC to BTC chain regardless of market depth and premium, and due to it, the current premium has reached 4%. A whale amount of arbitrage funds cross-chain BTC to renBTC has led to a rapid increase in the issuance of ren.
What Is Expected From The Market Next?
Currently, the hacker’s address holds over 100K Ethereum, and more liquidation of Ethereum may kick off a blood bath for the digital asset with a prolonged bearish trend. This has led to several speculations and viewpoints that if the hacker makes up his mind to cash out all the Ethereum, it may force others to exit the market to avoid any upcoming FUD situation, leading to the worst crypto winter by the end of 2022.
A well-known crypto analyst, Dylan LeClair, said, “The FTX exploiter, who has been dumping all other drained assets for ETH, is now one of the largest holders in the world, with 228,523 ETH ($284.82m) currently in their wallet. Everyone should keep an extremely close eye on what happens next…”
The hacker previously made huge transactions as he swapped 7,420 BNB on the BSC chain into 1,500 Ethereum and converted $48 million DAI into 37,000 ETH. He also withdrew 25,000 ETH for about $31.6 million from the Aave Protocol V2.
Following the recent incident, ETH has dramatically dropped from $1,200 and is trading at $1,171. If Ethereum’s price continues to face a massive dump situation, it may accelerate its selling pressure and drop below its crucial support zone of $1,150, which can force it to trade near $900.
FTX Hacker Is Now 27th Largest Ethereum Whale
After multiple transfers and exchanges, the main account which was linked with the FTX hack known as FTX Account Drainer now has 250,735 ETH which is worth $302.6M. As per Etherscan, the hacker is now the 27th largest Ethereum whale.
The Peck Shield, a Blockchain security company is the one that is looking into transfers and swaps done by the hacker. Till now there are 11 wallet addresses that have been found in connection with FTX Account Drainer. This has raised wallet’s Ethereum holdings. Apart from ETH, the wallet also holds nearly 8,184 Paxos Gold (PAXG) which is valued at $14.2M.
FTX Hacker Accumulates Massive Ethereum
The aftermath of FTX collapse is still hovering around as the FTX hacker who had stolen $600 million worth of assets is now selling other assets that he stole while accumulating massive Ethereum. Renowned crypto analyst Dylan LeClair the FTX hacker is currently one of the largest ETH holders with 228,523 ETH which is nearly $284.82M.
Market experts are now of the opinion that this could be a warning for Ethereum investors as the hacker might sell all of his Ethereum to cash out. Also Santiment claims that this FTX hacker has received funds from more than 100 addresses where one address has sent 100,614 ETH.
Kraken CSO claims to Identify the Hacker Who Stole $600 Million From FTX
Going into the weekend, FTX developments kept the cryptocurrency market on its toes. After hearing that FTX CEO Sam Bankman-Fried had declared bankruptcy and resigned, FTX reported account access violations.
Reports claim that hackers stole more than $600 million worth of cryptocurrency from FTX wallets, causing FTX to relocate all of the company’s remaining digital assets to cold wallet.
In response to Mario Nawfal earlier, Nick Percoco, the CSO of Kraken Exchange, stated that the Kraken team now knows the name of the individual who hacked FTX.
Mario Nawfal, the CEO and founder of IBCgroup.io, stated that “the hacker is very likely an inexperienced insider.”
The well-known YouTuber and supporter of cryptocurrencies and NFT, Satoshi Stacker, also commented on the matter, noting that “the FTX Hacker” just financed TRX wallet from Kraken.”
The Kraken team was able to identify the user because they had used Kraken to offload the stolen funds throughout the hack.
Tobias Silver, the founder of just.money, received praise from Dyma Budorin, CEO and co-founder of Hacken.io, for his thorough analysis of the FTX Tron accounts.
Incompetence of the hacker leads Budorin to conclude that “an insider is behind [the FTX] rug pull / exit scam.”
“We can confirm our team is aware of the identity of the account associated with the ongoing FTX hack, and we are committed to working with law enforcement to ensure they have everything they need to sufficiently investigate this matter,” a Kraken spokesperson told Bloomberg.
Chief Restructuring Officer, John Ray said, “An active fact review and mitigation exercise was initiated immediately in response. We have been in contact with, and are coordinating with law enforcement and relevant regulators.”
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Tether Blacklists $30 Million USDT Moved Out By FTX Hacker
The crypto space woke up with another hack, the FTX hack and this comes a day after Sam Bankman-Fried led FTX filed for bankruptcy. Now, the latest update claims that Tether has blacklisted $30 million USDT which was transferred by FTX hacker. The world’s largest stablecoin issuer, Tether had recently cleared that it is not connected with FTX nor Alameda.
In the early hours today, FTX hackers transferred around 593.92 Billion SHIB which is worth $5,713,541 from two unknown wallets known as FTX US and FTX Exchange.
DoJ Seizes 50,676 Bitcoin From Silk Road Hacker James Zhong
After a decade of intense investigation, Silk Road hacker James Zhong has pleaded guilty to defrauding the then-famous darknet marketplace Silk Road. As a result, the federal government of the United States has obtained security keys belonging to 50,676 Bitcoins, currently worth approximately $999 million at prices of around $19,723. The announcement was a major breakthrough for United States law enforcement, which has studied block by block until the seizure.
U.S. Attorney Damian Williams said: “ …. This case shows that we won’t stop following the money, no matter how expertly hidden, even to a circuit board in the bottom of a popcorn tin.”
Interestingly, Zhong was awarded an equal estimate of Bitcoin Cash after the August 2017 hard fork.
“ZHONG thereafter exchanged through an overseas cryptocurrency exchange all of the BCH Crime Proceeds for additional Bitcoin, amounting to approximately 3,500 Bitcoin of additional crime proceeds,” the DoJ noted.
Closer Look at Silk Road and Bitcoin Market
Silk Road was the top dark website between 2011 and 2013. A sting operation that included international law enforcement agencies captured the site’s founder Ross Ulbricht, who was jailed in the United States for life imprisonment. The move has, however, been contested by Ulbricht’s family and friends, who believe he was unfairly represented.
“Our entire family loves Ross and misses him terribly. Ross’s brutal, inflexible sentence has caused unimaginable suffering and grief to every one of us,” Gale LaCava, aunt, in a clemency letter
Zhong and Ulbricht may now have a chat behind bars. Reportedly, ZHONG executed a scheme to defraud Silk Road of its money and property by creating a string of approximately nine Silk Road accounts.
According to the DoJ, Zhong intended to conceal his identity through sophisticated crypto transactions. Moreover, Tornado Cash, among other cryptocurrency mixers, existed freely in the United States.
While the announcement has been classified as one of the biggest seizures by United States law enforcement, Bitcoin price has retreated over 5 percent today. Furthermore, there is a newly created sell pressure since the United States government will soon auction the Bitcoin stash.
In addition to the Bitcoin holding, the United States government has seized ZHONG’s 80 percent interest in RE&D Investments, LLC, a Memphis-based company with substantial real estate holdings. Other items included precious metals like gold and silver bars and
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Binance Announces Significant Hacker Attack
There aren’t many businesses that want to announce that they have suffered a massive loss of money and those in the Cryptocurrency industry are no exception. However, earlier this month BNB chain disclosed that they had lost a significant amount of money due to a hacker attack. The blockchain which is linked to the Binance Cryptocurrency exchange released the news which is less than ideal for anyone that is hoping Cryptocurrency winter is over and that things will go back to being slightly less volatile.
What Do We Know?
Binance is the world’s biggest Cryptocurrency exchange which is why it might not be a surprise that has recently gotten the attention of hackers. However, what many people might not have been able to predict is that a hacking attack would be able to cost them over $560 million. It wasn’t the platform itself that was targeted, instead, the Binance Smart Chain became a victim of hackers. It is this blockchain that works as a bridge for any asset transfers between networks and so the news that it can get hacked will worry many investors. As you might imagine, the CEO of Binance was quick to release a statement and recently sat down with CNBC News to talk to them about what happened. He emphasised the fact that this is something that we should be learning from saying “cross-chain bridges were particularly vulnerable to hacks and the industry needed to get better at learning from them.” Within this hack attack, no end users actually lost any money, but those that are investing large amounts of money in Cryptocurrency will certainly want to know what is being done to make sure that something like this can’t happen again.
Talking on their own platform they talked in more detail about how the series of attacks happened and how they will share further details of how it was able to happen later down the line. Of course, their priority is to make the system safe again and ensure that investors have peace of mind and confidence in using their platform once again.
The History of Cyber Attacks
Of course, Binance isn’t the only Cryptocurrency platform to fall victim to hackers and realistically they won’t be the last. Technology and the security system is always improving and getting harder to crack but then so is the software that the hackers use to infiltrate systems in this way.
We know that Chainalysis had around $2 billion stolen in a series of hack attacks, as well as the Cryptocurrency based game Axie Infinity which lost $600 million in a similar attack earlier this year. At the start of this year, the Wormhole Network was also a victim of a hack attack which saw them lose $325 million. These hack attacks may seem like they’re not a regular occurrence but with so much money held and transferred within the Cryptocurrency network, there are always going to be unscrupulous people that want to ensure they have a slice of the pie.
What Happens Next?
Experts are suggesting that this recent hack is a perfect example of why there needs to be more regulation in the crypto industry, similar to how the gambling industry has regulators to ensure safety for its users when they are getting casino offers.
Blockchain providers and Cryptocurrency platforms will no doubt be looking at the security of their own software and doing what they can to ensure that everything is as secure as possible. All eyes will be on Binance to see how they handle this and what changes (if any) they will make in the future.
It is currently run via a decentralised chain, which is something that will be debated to see if that is the best course of action in this instance.
“Decentralised chains are not designed to be stopped, but by contacting community validators one by one, we were able to stop the incident from spreading,” Binance Smart Chain said in its statement. “This delayed closure, but we were able to minimise the loss.”
The next step is for the Binance Smart Chain community to vote on what they think should happen – one thing they’ll be discussing is whether the stolen funds should be frozen and whether a reward should be put in place for anyone that helps them capture the hackers.
The Future of Cryptocurrency
There is no denying that Cryptocurrency is considered volatile even for those that choose to invest in it, but after the last few months many would have preferred news that would make it less volatile rather than more. We’ve seen some big value crashes throughout 2022 which had led to many people considering this period a Crypto winter and we had just got to the stage where people were hoping we could be in for a thaw and that things would start to improve. However, news of hacking attacks like this will do nothing to strengthen people’s confidence in digital currency and many will worry that it could lead to further drops in value later down the line.
However, what we do know is that the future is pretty impossible for people to predict – otherwise everyone would be doing it. We have less of a track record with Cryptocurrency than we do other similar financial investment opportunities so there are fewer opportunities to see what happened in the past.
Long-term the Binance attack will be forgotten as other platforms fall victim to similar crimes and other digital currency news dominates the headlines. However, for this month it is likely to have an effect on whether people choose to invest new money in Cryptocurrency and that could have an effect on the value, at least in the short term. Investors will be keeping an eye on the news regarding Binance and digital currency, keen to hear what steps the platform and blockchain have taken to ensure that an attack of this nature can be avoided in the future before they take the plunge and invest once again.
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Mango Markets DAO Approves a $47M Bounty for a Hacker
The post Mango Markets DAO Approves a $47M Bounty for a Hacker appeared first on Coinpedia Fintech News
Following the Oct. 12 Mango Markets attack, the hacker presented a proposal to the project, requesting that it utilize up to $70 million from its treasury to cover certain outstanding debts. He committed to repaying the cash if his stipulations were met.
the project team produced a proposal in an attempt to reach an agreement with the hacker the same day. according to the plan, the hacker will return up to $67M and keep the rest $47M as a bug bounty.
The message to the hacker reads:
“As a demonstration of good faith, you must return the assets other than MNGO, MSOL, USDC, and SOL within 12 hours of the proposal opening.”