Hacker Moves $500K in DAI Through Tornado Cash From DAO Maker Exploit

In Brief

• PeckShield Alert Detects 500k $DAI to Tornado Cash.
• Several crypto-related scams are being performed on popular platforms.
• Hackers are undermining the US Tornado Cash sanctions.

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Peckshield, a prominent blockchain security firm, took to Twitter to bring to light that $500K in stolen funds from the DAOMaker exploit are on the move.

PeckShield and CertiK said an Ethereum address associated with an exploit last year of DAO Maker has laundered 500,000 DAI stablecoins through Tornado Cash, using fake browser plugins to gain control of the funds they robbed.

“We are seeing a movement of $500,000 DAI to @TornadoCash from EOA 0x0B789. The address is directly connected to the DAOMaker exploiter who stole funds from @TheDaoMaker” Peckshield said in a tweet.

This is not the first-time illicit money flows are happening through Tornado Cash allegedly used by North Korea.

Popular platforms are prominent to hacks
According to the security firms, Hackers have taken note of different popular platforms, and have made them their targets. In December 2021, PeckShield identified an address responsible for exploiting Grim Finance and transferred $3.3 million into Tornado Cash. Relatedly, in September, Monox finance also suffered a heist of $2.1 million which was mixed using Tornado Cash. The hackers often siphon robbed monies through Tornado Cash because it’s hard to track and conceals the transactions.

DAO Maker suffered a hack in August 2021. Because of the ambiguities, hackers managed to take off with stablecoins worth $7 million and split in the different addresses owned by the hacker, according to the firms. One of the addresses, identified as Etherscan was today used to transfer DAI stablecoins $500,000.

Hackers ignore Tornado Sanctions
The Mixing Service, Tornado Cash, has been in the limelight since it was slapped with sanctions on Aug. 8, by the Treasury Department’s Office of Foreign Asset Control (OFAC) for allegedly sponsoring the laundering of $7 billion in illicit fund flows. The platform was also allegedly being used by the infamous North Korea hacking group Lazarus to launder stolen funds in the amount of $455 million.

Even though the sanctions are still in effect, hackers have continued to undermine them using decentralized finance protocols.

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Remmy Bahati, is a crypto and technology reporter at BeInCrypto and resides in New York, USA. She has a Master of Science in Journalism from Columbia University in New York City. She also works for Law360 as a Legal News Assistant monitoring the United States Congress, federal and state courts. Not only that, but he also worked for the United Nations in the global communications department. A television producer, video editor and writer, she has contributed to CNN, Columbia News Service, New York Times digital, NBS TV, TRT World, BBC, Huffington Post and Citizen TV.