Hackers Capitalize on Ethereum Price Drop Using Stolen Funds

Cyber criminals leverage the market crash to convert stolen assets into 16,892 ETH, highlighting ongoing security challenges in the crypto space.

Cryptocurrency hackers recently seized the opportunity presented by a market downturn to purchase a significant amount of discounted Ether using stolen funds from previous exploits. On August 5, hackers acquired 16,892 Ether, utilizing assets stolen from the Nomad bridge hack that occurred in August 2022. This purchase took place as Ether's price tumbled from approximately $2,760 to $2,172 within a 12-hour window.

Blockchain analytics firm Lookonchain reported that the Nomad bridge hacker utilized 39.75 million stolen Dai tokens to buy the Ether. Following the acquisition, the hacker began moving the funds to Tornado Cash, a popular crypto mixer used to obscure the traceability of transactions.

PeckShield, a blockchain investigation firm, added that the Nomad exploiter also sent 17.75 ETH to an intermediary address and has since transferred about 2,400 ETH (valued at roughly $7 million) to Tornado Cash.

In addition to the Nomad bridge incident, funds linked to the Pancake Bunny hack from three years ago are also on the move. The hacker attempted to capitalize on the depressed market prices by swapping stolen DAI tokens for ETH, but mistakenly sent 3.6 million DAI to a stablecoin address. Pancake Bunny, a decentralized finance protocol on the BNB Smart Chain, was compromised in a flash loan attack in 2021.

It is crucial to note that sending crypto tokens to unsupported wallets can result in irreversible losses. On July 8, the Pancake Bunny hacker funneled $2.9 million worth of Ether through Tornado Cash, demonstrating the persistent use of stolen funds to exploit market conditions.

photo source / Blockonome