- Cryptocurrency hacker bridged BTC to ETH, XRP, and LTC.
- The hacker adopted Tornado Cash and THORChain to conceal transactions.
- Privacy platforms remain under scrutiny due to the actions of criminals.
PeckShield and CertiK, two platforms renowned for tracking crypto transactions, have identified the movement of funds linked to the infamous social engineering scam of January 10, 2026. In their latest posts on X, both platforms show fund movement patterns involving blockchain bridges that the hacker employed to transfer the funds.
Hacker Deployed Privacy Protocols for Transactions
According to PeckShield’s report, the attacker has bridged 928.7 BTC, worth approximately $71 million, to 19,631.1 ETH, 3.15 million XRP, and 77,200 LTC via THORChain. After the initial transaction, the attacker further laundered 1,468.66 ETH, equivalent to $4.9 million via Tornado Cash, 735 ETH, worth $2.4 million to WhiteBit, and an additional 100 ETH to ChangeNOW.
PeckShield also identified other transactions linked to the stolen funds, including 2,402 ETH, equivalent to $8 million, that the attacker sent to a wallet on the KuCoin exchange, and another 143 ETH worth $477,000 sent to Huobi. In the meantime, CertiK Alert claimed to have detected Tornado Cash deposits linked to the January 10 social engineering hack, with about $63 million bridged to an unidentified wallet.
The Implication of the Hacker’s Actions on the Crypto Industry
Notably, the reports by PeckShield and CertiK reveal that the attacker used privacy protocols, including Tornado Cash and THORChain, to conceal transactions and hide identity. This development highlights the complexities of the debate over the use of privacy protocols and whether they should be allowed.
While many cryptocurrency proponents argue in favor of privacy protocols and how they can be useful in protecting users’ identities while engaging in online activities, the associated risks, particularly when used by criminals, make it difficult for regulators to accept the technology as one without extended consequences.
Nonetheless, despite the ability to conceal transactions, platforms like PeckShield and CertiK have, over the years, proven their worth in tracking such transactions, and in some cases, with the cooperation of third parties, such as crypto exchanges, recover stolen funds or at least prevent the thieves from running away with other people’s digital assets.
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