Axie Infinity hacker blocked money laundering

 The Tornado Cash money-laundering tool blocks transactions with the hacker's wallet address


allet addresses that are on the block list of Tornado Cash mixers will not be able to transfer funds directly to the network to remove traces like before. Tornado Cash is currently one of the most used tools by hackers to "launder" stolen cryptocurrency. As reported by Elliptic, as of April 14, the hacker in the Ronin bridge case transferred about 80.3 million USD worth of ETH into this tool, accounting for nearly 20% of the total amount of ETH they have appropriated.


However, blocking a Tornado Cash wallet address is considered a formality. Fraudsters can completely transfer money to another wallet and make transactions as usual.

Criminals currently use mixers to launder cryptocurrencies, most commonly Tornado Cash. Basically, the stolen money is put into a software to "mix" up, then return a similar amount, but the nature of the money source has changed.

The new move of Tornado Cash is also controversial in the crypto community. Previously, this tool was deprecated because it made it easy for bad guys to consume stolen money. However, with the compliance with the request from the regulator, many people fear that it has lost its decentralization when it can be affected by a third party.

Tornado Cash performs the block using a smart contract provided by Chainalysis, which lists all wallet addresses on the sanctions list. There are currently 24 wallet addresses included in these smart contracts.

Tornado Cash co-founder Roman Semenov later also explained that wallet blocking happens only on the user interface, i.e. at the dApp level, while the blockchain's protocol is immutable. “In other words, Tornado Cash itself cannot be closed by sanctions,” explains the BlockCrypto site.
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