Raydium hacker covers tracks with Tornado Cash

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Blockchain
Raydium hacker covers tracks with Tornado Cash

The Raydium hacker allegedly transferred 1,774.5 ETH to Tornado Cash to cover their tracks, etherscan.com reveals.

Raydium hacker moving funds

According to etherscan, a blockchain analytics and monitoring platform, the Raydium hacker is covering thier footsteps after taking advantage of a bug in the circle’s USDC stablecoin and wrapping SOL’s liquidity pools.

Etherscan tracking progress indicates the attacker’s 0xb98ac wallet address transferred approximately $2.7 million (or 1,774.5 ETH) to Tornado cash.

Tornado Cash is a Decentralized privacy and data protection platform developed on the Ethereum blockchain. The platform allows users to deposit and anonymously withdraw Ethereum’s ERC-20 tokens and ethereum (ETH) using different wallet addresses. 

Hackers and criminals have used the platform to hide their transaction history through the privacy-enhanced smart contract on Tornado Cash. In simple terms, users can deposit funds using one wallet address and withdraw using a different address.

Raydium lost over $2 million in the LP compromise

On Dec. 16, Raydium announced on Twitter that “owner authority was overtaken by an attacker” who allegedly drained the protocol’s liquidity pools.

The exploiter reportedly used admin wallets to verify the drainage without burning Liquidity Pool tokens. According to Nansen Portfolio, Raydium lost $2.2 million in digital assets, including $1.6 million worth of SOL.

The exploiter exchanged all the stolen funds for ETH and is currently covering his tracks using Tornado.

Raydium hacker covers tracks with Tornado Cash - 1
A snippet of the attackers’ wallet after the exploit source: Nansen portfolio

At the time of this publication, the wallet address currently holds only $54, with $21 in SOL and $11 in MEDIA tokens.

Raydium hacker covers tracks with Tornado Cash - 2
A snippet of the attackers’ wallet after the tornado Cash transfer. Source: Nansen Portfolio

The hack heavily impacted Solana’s price and consequently ranked among the worst-performing cryptocurrencies towards the end of 2022.

The project was also heavily exposed to FTX, reinforcing bearish concerns among crypto traders and long-term investors. Despite the ‘falling knife’ phenomena depicted by SOL price, co-founder of Ethereum, Vitalik Buterin, expressed his bullish views saying Solana would recover.

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Julius Mutunkei

Julius is a blockchain reporter skilled at synthesizing all crypto-related information to make articulate texts easy for anyone to grasp. With a beginner's level certificate in Financial Analysis, Julius can read, interpret and report crypto findings to help investors exercise the best judgment in their decision-making process. When he is not caught up in the crypto frenzy, Julius likes playing a game of FIFA with his online buddies.