Hackers use stolen funds to buy ETH amid price crash
As the price of ETH dropped over 20% on Aug. 30, hackers were seen leveraging the opportunity to buy the dip using stolen crypto.
According to blockchain security firm PeckSheild, the perpetrators behind the 2021 hack on Binance Smart Chain-based defi protocol Pancake Bunny bought 2.922K ETH for 7.8M DAI.
The defi protocol was exploited in a 2021 flash loan attack, in which $46 million worth of its tokens were siphoned off and swapped for tokens like BNB, USDT, and DAI. The attack caused the price of the project’s native token, BUNNY, to crash.
Last month, the exploiter’s address returned from dormancy and transferred 1,002 Ether to crypto mixer Tornado Cash. The service allows bad actors to make tracing of funds difficult for authorities.
At the time, the attacker’s wallet reportedly held $11.4 million of Dai (DAI).
Similarly, the attackers behind the $200 million hack of cross-chain token bridge Nomad have also acquired ETH, according to analytics firm Lookonchain.
Nomad Bridge allowed users to send funds across multiple blockchains. The attack stemmed from a vulnerability in the smart contract where tokens sent via the bridge are initially deposited.
On August 30, 2024, the attacker spent 39.75 million DAI to acquire 16,892 ETH before moving them through Tornado Cash in a series of transactions for 100 ETH each. In total, the attacker moved approximately 2400 ETH to the privacy mixer.
Over the years, the attacker has moved the stolen assets on multiple occasions, with over $1.5 million laundered via Tornado Cash in January 2023. Prior to that, $7.5 million was moved to an unknown address.
As of publication time, one of the Nomad bridge attacker’s wallets held just over 14,500 ETH valued at over $33 million.
The recent moves come as ETH recorded its largest drop in 2024, presenting a lucrative buying opportunity. According to analysts, the cryptocurrency has lost key support levels, and the price is expected to dip even further.
The price drop came as the broader crypto market saw over $1 billion in liquidations recorded in 24 hours.
