$35 Million in Stolen Ether Laundered Through Tornado Cash

A major transfer of 14,500 ETH, worth about $35.2 million, has been traced to Tornado Cash, a crypto mixing platform, linked to the Nomad Bridge hack of August 2022.

This transaction, flagged by PeckshiedAlert, occurred on August 8.

Previously, on August 5, stolen funds from the same hack were used to acquire 16,892 ETH, coinciding with a significant drop in Ethereum’s value from $2,760 to $2,172 within 12 hours due to a market downturn.

Tornado Cash, which obscures transaction histories on Ethereum through privacy techniques, has been exploited by criminals to launder stolen cryptocurrencies.

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The platform, sanctioned by the U.S. Treasury in 2022, continues to face regulatory challenges. Despite sanctions, Tornado Cash usage has increased, and its developers face legal issues, including money laundering charges.

The broader crypto community remains concerned about the impact of such privacy tools on digital asset security and regulatory efforts to curb misuse.

Alexander Stefanov