KyberSwap Hackers Start Laundering Money Through Tornado Cash

Blockchain data shows that the attacker behind the attack on DEX KyberSwap, causing $48.8 million in damage, has begun looking to disperse assets through the Tornado Cash mixer.

On December 3, the hacker transferred more than 2,010 ETH from Arbitrum to Ethereum, then sent 1,000 ETH to Tornado Cash through many small transactions, each transaction of 100 ETH.

#PeckShieldAlert @KyberNetwork Exploiter-labeled address has bridged 3K $ETH from #Arbitrum to #Etheruem and transferred 1K $ETH to #Tornadocash pic.twitter.com/IABzPokwfI

— PeckShieldAlert (@PeckShieldAlert) December 4, 2023

Previously, hackers took advantage of a vulnerability in KyberSwap’s protocol to withdraw 48.8 million USD from the assets of the liquidity provider on the DEX. After a period of silence, the hacker suddenly offered to return 50% of assets if Kyber Network accepted to transfer the entire project to him.

In the face of hacker demands, the Kyber Network team refused and committed to 100% compensation for lost users. They also affirmed that they will pursue the case and reveal the identity of the attacker.

The decision to use Tornado Cash for money laundering appears to be a tacit move, demonstrating disapproval of any agreement with Kyber Network.

Tornado Cash, an ETH transaction mixer, has been accused by the US government of supporting money laundering by multiple hacker organizations involved in major security attacks, causing hundreds of millions of dollars in losses in the cryptocurrency industry. Therefore, in August 2022, US authorities placed Tornado Cash on the sanctions list and ordered the arrest of the project’s two founders.

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However, Tornado Cash’s smart contract still operates normally and continues to be used by both crypto users and hackers with high programming skills to hide transactions on Ethereum.