- Hackers use Tornado Cash to obscure $36.9M in stolen Ethereum, raising laundering concerns.
- OKX bans Tornado Cash to comply with regulations amid increasing crypto laundering fears.
- Despite laundering challenges, Ethereum’s value surges 10.28%, showcasing market resilience.
In a recent development, blockchain security firm PeckShieldAlert reported that a hacker-labeled address linked to Crypto Exchange Rain transferred 721 Ethereum (ETH), valued at approximately $1.7 million, to the crypto mixing service Tornado Cash. This incident has raised concerns about the use of mixers to potentially launder stolen funds.
Following the Rain exchange incident, another significant movement was reported involving the Nomad Bridge exploit. An exploiter transferred a substantial 14,500 ETH, worth about $35.2 million, to Tornado Cash. These transactions highlight the prevalent use of mixing services to obscure the origins of large sums of crypto assets, complicating efforts to track and recover stolen funds.
The use of services like Tornado Cash, which makes it difficult to trace the source of funds, has alarmed the crypto community and global regulators. This increased scrutiny has led to more legal action, as exemplified by the arrest and denial of bail for Tornado Cash developer Alexey Pertsev in the Netherlands. Pertsev has been imprisoned for over five years, underscoring the intense regulatory challenges faced by operators of crypto mixing services.
In response to these security concerns, OKX, a leading cryptocurrency exchange, has taken decisive action against the use of mixers. OKX’s CEO, Star, announced on his X account a ban on accounts utilizing Tornado Cash. This move aims to align with global regulatory standards and enhance the platform’s security against money laundering activities.
Despite security and regulatory challenges, Ethereum’s market value remains strong. As of the time of writing, Ethereum was priced at $2,669.44, reflecting an increase of 10.28% over the past 24 hours.
Ethereum continues to play a key role in the market, with a live market cap exceeding $321 billion. Currently, Ethereum holds the #2 spot on CoinMarketCap, with a live market cap of $321 billion boasting a 24-hour trading volume of $23.1 billion. Ethereum’s circulating supply is 120.2 million ETH coins.
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