A staggering $53.5 million worth of Ether (ETH) linked to the notorious November 2023 hack of Poloniex has been discovered in the depths of Tornado Cash, a decentralized cryptocurrency mixer. This revelation, brought to light by PeckShieldAlert, sheds new light on the profound implications of one of the most severe breaches in cryptocurrency security.
The Poloniex cryptocurrency exchange fell victim to an attack on November 10, 2023, resulting in losses surpassing $100 million worth of Ether. Despite Poloniex’s efforts to reclaim the stolen funds, including offering a substantial $10 million reward, the endeavor proved fruitless as the hacker remained elusive. The blockchain security firm attributed the hack to a compromised private key.
In the wake of the breach, Poloniex froze the affected wallets and embarked on an investigation. However, the hacker’s intention to return the funds never materialized, leaving Poloniex and its users in a state of turmoil.
Through rigorous inquiries, PeckShield uncovered a significant portion of the stolen funds, approximately $53 million, which had been laundered through Tornado Cash. The hacker skillfully transferred approximately 17,800 ETH from various wallets to a single address within Tornado Cash, complicating the process of tracing and retrieving the funds.
Despite the shutdown of the crypto-exchange, Poloniex pressed on, allowing investors to deposit and withdraw cryptocurrencies. The exchange was willing to take the risk of bolstering its security measures by enlisting the services of a reputable auditing firm to conduct a thorough examination. Once the audit is completed, Poloniex has pledged to promptly resume deposit and withdrawal services.
Justin Sun, the CEO and founder of Poloniex and TRON, reassured the affected users that they would receive full compensation and emphasized that Poloniex boasts a robust financial standing. Additionally, Sun expressed his commitment to collaborating with other exchanges in the pursuit of recovering the stolen funds, demonstrating his dedication to addressing the aftermath of the hacking incident.
