The Defi protocol exploit caused the hackers to send 1,774. ETH, In an alarm, blockchain security firm CertiK revealed that the Raydium protocol exploiter had sent 1,774.5 Ether to the mixer. The amount is worth around $2.8 million at the hour of composing.
While security teams from different exchanges continue to combat the efforts of hackers, funds continue to stream to the sanctioned Cryptocurrency mixer Tornado Cash.
Attack on the Solana-based decentralized finance (DeFi) protocol occurred back in December.
According to the developers, the hackers took control of the exchange owner’s account and drained the liquidity provider funds consisting of different digital assets like USD Coin, Wrapped Solana (wSOL) and Raydium.
Following the initial investigation, the DeFi protocol determined that the exploit was because of a vulnerability in the decentralized exchange’s smart contracts. This allowed administrators to pull out liquidity pools as fees.
Because of the losses, the Raydium team also proposed an arrangement to compensate the victims of the hacks, including utilizing the decentralized autonomous organization treasury to purchase missing tokens, repaying those impacted by the exploit.
In a report released on Jan. 9, blockchain analysis firm Chainalysis pointed out that while Tornado Cash sanctions affected the mixer, no organization can “pull the plug” easily compared to centralized services. While its website can be taken down, its smart contracts can run indefinitely, highlighting that anybody can continue to use it at any time.
While hackers continue to move funds actively, it doesn’t necessarily in every case end up as a success for them. Recently, centralized crypto exchanges Binance and Huobi had the option to identify and freeze funds deposited by the Harmony One hackers. Binance CEO Changpeng Zhao revealed that their security team collaborated with Huobi to recover 121 Bitcoin from the hackers, which was valued at $2.5 million at the time.
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