Kronos Research hacker starts laundering funds on Tornado Cash

Main Points About Bitcoin, Web3, Ethereum, and Cryptocurrency:

  • The hackers behind the $25 million Kronos Research exploit have started transferring the stolen funds to the mixing platform Tornadocash, a platform known for laundering crypto assets.
  • Tornado Cash, the open-source platform used for mixing crypto funds, has faced criticism from regulators and sanctions from the U.S. Department of the Treasury’s Office of Foreign Assets Control for its role in laundering illicit funds.
  • Despite facing sanctions, Tornado Cash continues to be used by bad actors, laundering over half a billion dollars worth of crypto in 2023 alone.
  • The Kronos Research hackers used stolen API keys to execute the attack, which was initially disclosed in November 2023 and confirmed by on-chain investigator ZachXBT.
  • Attempts to negotiate with the hacker for the return of the stolen funds were unsuccessful, leading to ongoing challenges in recovering the pilfered assets.
  • Recent trends show a decline in crypto thefts, with notable decreases in March and April 2024 compared to previous months.

Kronos Research Hacker Transfers Funds to Tornado Cash

The hackers responsible for the $25 million Kronos Research exploit have initiated the transfer of the stolen funds to the mixing platform Tornado Cash, known for obscuring the origin of crypto assets and facilitating money laundering activities.

Challenges Faced by Tornado Cash Amid Sanctions

Despite facing regulatory sanctions from the U.S. Department of the Treasury, Tornado Cash remains a popular choice for bad actors looking to launder illicit funds, with over half a billion dollars in crypto assets laundered through the platform in 2023 alone. The creators of Tornado Cash have faced charges related to money laundering, further adding to the platform’s controversies.

Kronos Research Hack and Recovery Efforts

The Kronos Research hack, which was disclosed in November 2023, involved the unauthorized transfer of funds using stolen API keys. Despite efforts to negotiate with the hacker for the return of the pilfered funds, challenges persist in recovering the stolen assets. Recent trends indicate a decline in crypto thefts, offering some hope for improved security in the cryptocurrency space.

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