Last month, the hacking of an older version of the Yearn Finance protocol resulted in the exploiter obtaining $11.6 million in stablecoins through minting over 1 quadrillion Yearn Tether (yUSDT). Recently, blockchain analytics firm PeckShield uncovered the exploiter’s movement of over 2000 ETH, valued at $3.6 million, to Tornado Cash. Furthermore, according to PeckShield, the hacker has successfully laundered nearly $9.3 million worth of loot through layered transactions on Tornado Cash.
While the funds involved in the hacking incident have been traced through various addresses and subsequently routed through Tornado Cash, PeckShield reports that one address associated with the iearn exploiter has transferred a total of 4,134 ETH to the sanctioned crypto mixer. Consequently, industry insiders have started questioning the effectiveness of the sanctions placed on the crypto mixer.
Increased legal actions directed at hackers and last year’s sanctions on Tornado Cash have made it more difficult for cybercriminals to launder their earnings from attacks on cryptocurrency projects. According to a report from blockchain intelligence firm TRM Labs, the first quarter of 2023 witnessed a drastic decline in the number of cyber heists, experiencing a 70% drop in stolen funds compared to the same period in 2022. The report suggests that this trend projects a positive development for the industry.
However, while the reported results highlight the industry’s effort to curb cybercrimes, it appears the Tornado Cash sanctions have not entirely deterred hackers from using the contentious crypto mixer. This raises concerns over the long-term effectiveness of sanctions and the potential development of new strategies by hackers.
With an approximate $400 million stolen across 40 attacks, it is clear that the fight against cybercrimes is far from over, and industry stakeholders must continue to evolve their security measures. In addition, crypto enthusiasts and investors alike are advised to conduct thorough research and be vigilant about protecting their digital assets from potential hacking threats.
While it is encouraging to see the decreasing number of cryptocurrency hacks and associated losses, an equilibrium must be struck between implementing adequate security measures and managing risk. The existing sanctions on Tornado Cash may have led to a notable decline in crypto hacks, but more robust strategies are needed to counter the evolving tactics of cybercriminals in the blockchain space. In the end, the collaboration between technology innovators, legal authorities, and the cryptocurrency community will be key to creating a safer and more secure digital asset ecosystem.
Source: Coingape
