Cryptocurrency Attacker Trying to Launder Stolen Millions!
Cryptocurrency markets have been experiencing significant activity in recent days. Ethereum price has risen more than 20% in the last 24 hours following news of a potential U-turn by the US Securities and Exchange Commission (SEC). In this bullish environment, the bad actor behind the $25 million Kronos Research attack also took action. It was revealed that the hacker transferred millions of dollars of Ethereum to cryptocurrency mixing service Tornado Cash to launder the stolen funds.
If we go into the details of the transfer, according to the tweet of on-chain security firm PeckShield, a transfer of 700 Ethereum, or approximately $2.6 million, was made from the hacked Kronos Research account “0x3” on May 21. This transfer consists of seven separate transactions totaling 1000 Ethereum. When the three 100 ETH transfers made by the hacker on May 20 are added to this figure, the total amount of stolen funds exceeds 3.7 million dollars. After the transfer, the hacker still has around 60 ETH in his wallet, worth approximately $223,000 worth of cryptocurrency. CoinStats data shows that the attacker’s wallet was worth over $6.4 million at its peak on May 19.
The sudden rise in Ethereum prices probably lies behind this move by the hacker. Ethereum, which has gained over 20% in value in the last 24 hours, is currently trading around $3,744. CoinMarketCap data reveals that Ethereum last traded above these levels on March 15.
Behind this rise in Ethereum prices lies the potential change in the SEC’s stance on spot Bitcoin ETFs. Spot ETFs are investment vehicles that allow investors to track prices without investing directly in cryptocurrencies. According to some reports, the SEC is considering approving spot Ethereum ETFs due to political pressure. This news reveals that requests have also been made to ETF exchanges to update their 19b-4 records.
Another factor contributing to the bullish market environment is that respected Bloomberg ETF analyst Eric Balchunas raised the probability of approval of spot Ethereum ETFs from 25% to 75%. These developments increase investors’ interest in cryptocurrencies.
However, the Kronos attacker’s transfer also sheds light on the dark side of cryptocurrency markets. Platforms like cryptocurrency mixing service Tornado Cash make it difficult to trace cryptocurrency transactions. This situation becomes an attractive option, especially for laundering cryptocurrencies obtained through illegal means.
This transfer of the Kronos attacker is a continuation of a similar transfer that occurred in early May. The attacker had previously transferred 1,314 Ethereum, or approximately $4 million, to the same Tornado Cash service on May 7.
The Kronos Research attack occurred in November 2023. The attackers stole 12,800 Ethereum worth approximately $25 million by accessing the firm’s application programming interface keys. This incident also drew attention to security vulnerabilities in the decentralized finance (DeFi) sector. Following the attack, Kronos Capital was forced to halt its trading services to investigate its losses.
In conclusion, the latest transfer of the Kronos attacker sheds light on the laundering of funds obtained from illegal activities and traceability problems in cryptocurrency markets. At the same time, the SEC’s potential U-turn and rising Ethereum prices are increasing the excitement in the cryptocurrency markets. However, the continuity of this excitement depends on the approach of regulatory institutions to the crypto sector and the maturation process of cryptocurrencies.
