The hacker responsible for the April 2024 exploit of Bahrain-based Rain Exchange has begun laundering stolen Ethereum through Tornado Cash.
This move was detected by blockchain security firm PeckShield, which shared the details on X.
#PeckShieldAlert Crypto Exchange #Rain hacker-labeled address has started laundering $ETH through #Tornadocash pic.twitter.com/vIFV0hMoC7
— PeckShieldAlert (@PeckShieldAlert) August 7, 2024
Rain hack resulted in $14.8 million loss
The Rain Exchange drain, which resulted in a loss of approximately $14.8 million, initially flew under the radar until crypto investigator ZachXBT brought it to light in May. The attack that happened on April 29, 2024, saw suspicious outflows from Rain’s Bitcoin, Ethereum, Solana, and XRP wallets.
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In the immediate aftermath of the attack, the stolen funds were moved to instant exchanges and converted primarily to Bitcoin and Ethereum.
The recent move to funnel Ethereum through Tornado Cash suggests the attacker is now attempting to further obscure the origins of the stolen funds. This step makes it increasingly challenging for law enforcement and blockchain analysts to track and potentially recover the assets.
This incident is particularly notable given Rain Exchange’s recent regulatory achievements. Just a year before the hack, the exchange had received a license to function as a crypto brokerage and custody service provider in Abu Dhabi.
2024 has been primarily filled with crypto hacks and scams. One of the largest and most recent attacks was on the Indian crypto exchange WazirX, which resulted in the loss of over $200 million in crypto.
Yesterday, the Ronin Bridge was exploited for over 4,000 Ethereum. However, the culprits appeared to be white hats and then returned the funds to Ronin.
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Also Read: Michael Saylor Advocates for US Bitcoin Reserve Strategy
