Key Takeaways:
- Parity wallet hackers have started moving Ethereum into Tornado Cash.
- Hackers are taking advantage of the mixed protocols of the smart token contract.
In 2017, the second-largest hack on Ethereum happened. As a result, the Ethereum client lost 150,000ETH, worth almost $30 million. Seven addresses were linked to this hack, and each was holding 70,000 ETH.
After showing no signs of activity for three years, on 27th December 2020 one of the addresses (wallet no. 0x4de76b3dfd38292ba71cf2465ca3a1d526dcb567) started converting almost 300ETH into renBTC.
There was again no movement for a while. However, on March 14, PeckShieldAlert shared the details of the recent activities of the multi-sig hacker. Continous transfer of Ethereum to TornadoCash has been noticed. The hacker has already moved $990 into the smart token contract.
Tornado Cash is infamous for its association with such scams and hacks. Its mixing protocols allow users to obfuscate the transaction history. Users are worried about the same, and some suggest imposing a ban on Tornado Cash.
The smart token contract protocols aimed to provide privacy to its users. But unfortunately, criminals are using it for their illicit activities. If this continues, then the regulators may interfere with the operation of Tornado Cash soon.
