Hacker Launders 8,961 ETH for DAI via Tornado Cash
A hacker swapped 8,961 ETH for $39.26M DAI after laundering it through Tornado Cash.
- Hacker moved 8,961 ETH through Tornado Cash
- ETH swapped for $39.26M DAI at $4,382/ETH
- Raises concerns over crypto laundering tactics
In a high-profile move, a hacker has funneled 8,961 ETH—worth approximately $39.26 million—through Tornado Cash, a well-known Ethereum mixing service. After successfully anonymizing the funds, the ETH was swiftly exchanged for DAI, a stablecoin pegged to the U.S. dollar, at an eye-popping rate of $4,382 per ETH.
This calculated swap of ETH to DAI has once again put Tornado Cash under the regulatory microscope, especially given the size and speed of the transaction.
Tornado Cash: A Haven for Illicit Transactions
Tornado Cash is a decentralized privacy protocol designed to obscure the transaction trail on Ethereum. Though initially built to enhance user privacy, it has become a tool of choice for hackers and cybercriminals aiming to launder stolen assets without revealing their identities.
Despite being sanctioned by U.S. authorities in 2022, Tornado Cash continues to operate due to its decentralized nature, making enforcement a persistent challenge.
The latest exploit showcases how quickly and quietly large sums can move through DeFi channels without oversight—raising urgent questions about the future of privacy and compliance in decentralized finance.
DAI Swap Signals Exit Strategy
After washing the ETH, the hacker opted to convert the funds into DAI, possibly to stabilize the value and prepare for off-ramping into fiat currency. The swap at $4,382 per ETH—well above current market rates—suggests possible use of low-liquidity pools, OTC deals, or even price manipulation.
This incident reflects the growing need for transparent on-chain monitoring tools and stricter AML protocols, especially as bad actors find new ways to exploit DeFi infrastructure.
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