Key Takeaways
- As per PeckShield, the hacker transferred 1,155 ETH, valued at approximately $2.9 million.
- Rain was exploited on April 29, with losses standing at approximately $14.8 million
A hacker-linked address from Bahrain-based crypto exchange Rain has begun laundering funds through the crypto mixer Tornado Cash. According to PeckShieldAlert on X, the hacker transferred 1,155 ETH, valued at approximately $2.9 million.
Rain was compromised in a significant hack at the end of April, with suspicious outflows occurring on April 29 from several Bitgo wallets associated with the exchange. The total amount stolen was estimated to be $14.8 million. These funds were subsequently converted into 137.9 BTC and 1881 ETH, which were then transferred to separate wallets.
Rain’s co-founder, AJ Nelson, confirmed the breach shortly after it occurred. Nelson assured users that the exchange had covered the stolen assets from its funds, ensuring the platform’s continued operation.
Rain is a centralized crypto exchange headquartered in Bahrain. Rain secured a license to operate a virtual asset brokerage and custody service in the United Arab Emirates in 2023. The exchange caters mainly to the crypto needs of customers in the Middle East.
Rain had also raised $110 million in 2022 in a a Series B funding round that valued the firm at $500 million. As per media reports, Rain has recorded more than $1 billion in trading volume since its inception.
The latest development also brings into the limelight the increasing phenomenon of hackers leveraging crypto mixers to launder funds. Crypto Mixers use an algorithmic technique to disguise who each of the coins belongs to, where they came from, and by whom they’ll be withdrawn.
Last month, two wallets linked to the CoinStats exploit transferred 311 ETH. Earlier this year, the hacker behind the $25 million breach at Kronos Research transferred another $2.6 million worth of Ether to Tornado Cash.
Crypto exploits are becoming increasingly common in the Web3 space. As per a PeckShield report, in July alone 16 crypto hacks resulted in approximately $266 million in losses
