Hackers Exploit Market Crash to Buy Cheap Ethereum with Stolen Funds

Hackers are using the recent crypto market crash to buy cheap Ethereum with stolen money. On August 5, a thief bought 16,892 Ether using funds stolen from last year’s Nomad crypto bridge hack. This happened as Ether’s price fell over 20% in 12 hours, dropping from about $2,760 to $2,172.

Source: TradingView

Lookonchain, a blockchain analysis firm, found that the Nomad hacker used 39.75 million stolen Dai tokens to buy the Ether. Right after purchasing, the hacker moved the funds to Tornado Cash, a service that mixes crypto to hide its origin.

Source: Lookonchain

Hackers often use mixing services like Tornado Cash to cover their tracks. They rarely plan to give back stolen money.

Ethereum Hacks: Nomad and Pancake Bunny Moves

PeckShield, another blockchain detective company, added that the Nomad hacker also sent 17.75 ETH to a different Ethereum address. So far, the hacker has moved about 2,400 ETH (worth around $7 million) to Tornado Cash.

Source: PeckShieldAlert

In a related story, money stolen from the Pancake Bunny hack three years ago is also on the move during this market downturn. The Pancake Bunny hacker tried to swap stolen Dai for Ether to take advantage of lower prices. But blockchain investigator Officer CIA said the hacker accidentally sent 3.6 million Dai to the wrong address.

Pancake Bunny, a decentralized finance system on the BNB Smart Chain, was the victim of a flash loan attack in 2021.

It’s important to remember that sending crypto to the wrong wallets can result in permanent fund loss. On July 8, the Pancake Bunny hacker had already moved $2.9 million worth of Ether through Tornado Cash.

These events show how hackers are taking advantage of market volatility. They’re using stolen funds to buy cryptocurrencies at lower prices, hoping to profit when the market recovers. This highlights the ongoing security risks in the crypto world and the need for better protection against theft and fraud.

As the crypto market fluctuates, users and platforms must stay vigilant. Strong security measures and careful handling of digital assets are crucial to prevent losses and protect against opportunistic hackers.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.