Hackers Start Laundering Money After Axie Infinity Hack

 About 7 million USD worth of Ethereum from the hacker's wallet was transferred to the Tornado


According to experts, the move to transfer money to Tornado Cash shows that the attacker is intending to withdraw money from this transaction. Tornado Cash is the most popular "mixer" today, often used by cybercriminals to erase traces.

The tool allows users to deposit Ethereum (ETH) cryptocurrency, then withdraw the same amount, and the trace of every transaction is concealed. "Whenever ETH is withdrawn using a new address, there is no way to link the withdrawal to the deposit at the old address, which ensures absolute privacy," the Tornado Cash website describes. Previously, Tornado was also used by hackers in the theft of $34 million from Crypto.com.

According to Cryptoslate, the easiest way for hackers to withdraw stolen funds is to transfer them to centralized exchanges with sufficient liquidity. However, because the hacker's wallet address is already on the blacklist of the exchanges, it will not be possible to do the above method. The most effective option is through mixers like Tornado Cash. Before that, the hacker also transferred thousands of ETH to some exchanges such as FTX, Huobi. These exchanges said they will cooperate to investigate the identity of the attacker, but no information has been released yet.

On April 4, Ronin Network said the incident was under investigation, so it would not comment. The project also pledged to refund the entire stolen money to investors.

The attack occurred on March 23 and was announced on March 29. As announced by Sky Mavis, the Ronin Network bridge was controlled by hackers with at least five validation nodes, thereby performing unauthorized transactions with a total amount of 173,600 Ethereum and 25.5 million USDC, equivalent to about 615 million USD.
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