Deribit attackers transfer stolen ETH to Tornado cash crypto mixer

• The Deribit hacker has taken off an amount of 1,10 Ether.
• The amount was moved with about 17 transactions.

In the repercussions of the $28 million Deribit exploit, the anonymous hacker transfers stolen funds with the help of a decentralized cryptocurrency mixer, Tornado cash.

The Deribit hot wallet attacker has swiped a total of 1,610 Ether or about $2.5 million to Tornado Cash, as per the data revealed by the Ethereum block explorer, Etherscan.

The amount was moved by doing 17 transactions, with the first uninhibited transaction happening on November 5, only after a few days when Deribit faced the attack.

The number of funds transferred to Tornado Cash is only a small portion of all theft ETH on the address of the attacker, as its balance is estimated at about 7,501 ETH or nearly $11.8 million at the press time. Primarily, the attacker moved 9,080 ETH to the address on November 2. 

PeckShield, a blockchain security company primarily stated on the outgoing Tornado Cash transactions on November 5. At the time, the number of funds leaving the Ethereum wallet of the attacker was estimated at only $350,000.

$28 million loss

Deribit has publicized formally that its platform faced a hot wallet hack on November 2, which resulted in the loss of the amount estimated at $28 million in various cryptocurrencies like Bitcoin, Ethereum, and USD Coin. The platform had to suspend all withdrawals to just make sure that there is proper security in the repercussions of the attack, guaranteeing to cover all the losses.

The exchange eventually recommenced normal withdrawals for Bitcoin, Ethereum, and USDC on November 2, drifting all hot wallets to the digital asset security platform, Fireblocks. Deribit emphasized that users should not transfer their funds to their preceding Bitcoin, Ethereum, and USDC addresses and utilize new Fireblocks deposit addresses in place of that.

The news came at a time when there was unpredictability over Tornado Cash and other cryptocurrency mixers after supermacies in the United States limited the mixer. 

The Office of Foreign Assets Control of the United States Department of the Treasury boycotted Tornado Cash in August of this year, making it illicit for natives, residents, and firms to make a payment by that service.

In October 2022, the crypto defense group Coin Center made a complaint against OFAC, Treasury Secretary Janet Yellen, and OFAC director Andrea Gacki, accusing that permitting Tornado Cash was “unparalleled and illegal.”

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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