Crypto

Raydium miner transfers $2.7 million to crypto mixer Tornado Cash

In an alert, blockchain security firm CertiK reported that protocol miner Raydium sent 1,774.5 Ether (ETH) to the blender. The amount is worth around $2.7 million at the time of writing.

As security teams at various exchanges continue to battle hacker efforts, funds continue to flow into sanctioned cryptocurrency mixer Tornado Cash.

The attack on the Solana-based decentralized finance (DeFi) protocol happened on December 16. According to the developers, hackers took control of the exchange owner’s account and drained funds from the liquidity provider consisting of various digital assets like USD Coin (USDC), Wrapped Solana (wSOL) and Raydium.

Following initial investigation, the DeFi protocol determined that the exploit was due to a vulnerability in the decentralized exchange’s smart contracts. This allowed administrators to withdraw pools of cash as a fee.

Due to the losses, the Raydium team also came up with a plan to compensate victims of hacks, involving the use of Decentralized Autonomous Organization treasury to purchase missing tokens, reimbursing those affected by the exploit.

In a January 9 report, blockchain analytics firm Chainalysis pointed out that while Tornado Cash sanctions have some effect on the mixer, no organization can easily “unplug” from centralized services. Although its website may be taken down, its smart contracts can run indefinitelyemphasizing that anyone can continue to use it at any time.

Related: Balancer warns some LPs to remove liquidity ASAP due to ‘related issue’

While hackers continue to actively move funds, it doesn’t always end as a victory for them. Recently, centralized crypto exchanges Binance and Huobi were able to detect and freeze funds filed by Harmony One hackers. Binance CEO Changpeng Zhao reported that his security team worked with Huobi to recover 121 Bitcoins (BTC) pirates, which was worth $2.5 million at the time.