CoinStats Exploiter Funnels Close to $1M through Tornado Cash

This post was originally published on Coinspeaker

The recent transfers represent a deliberate attempt by the exploiter to launder the stolen funds.

Wallets linked to the CoinStats exploiter have moved nearly $1 million in Ether (ETH) into the cryptocurrency mixing protocol Tornado Cash. Blockchain security firm CertiK flagged that two wallets associated with the June CoinStats exploit transferred 311 ETH, worth approximately $959,000, to Tornado Cash. One wallet moved 211 ETH, while the other sent 100 ETH to the crypto mixer.

The recent transfers represent a deliberate attempt by the exploiter to launder the stolen funds. Crypto mixers like Tornado Cash are designed to enhance privacy by obfuscating the trail of cryptocurrency transactions. They work by pooling together multiple transactions from different users and then redistributing the funds in a way that makes it difficult to trace the source.

Tornado Cash’s popularity amongst scammers has grown rapidly. The platform is currently a subject of heightened regulatory scrutiny, with its co-founder Alex Pertsev facing multiple charges under several jurisdictions.

Revisiting the CoinStats Hack

The CoinStats hack, which came to light on June 22, 2023, compromised 1,590 crypto wallets, resulting in a loss of approximately $2 million. CoinStats, a popular cryptocurrency portfolio manager, swiftly suspended user activity

Read the rest of this post, which was originally published on Coinspeaker.

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