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Hacker Transfers Funds to Tornado Cash: Kronos Research

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Hacker Transfers Funds to Tornado Cash: Kronos Research

In mid-November of last year, a cyber criminal successfully pulled off a $25 million exploit on the quantitative trading firm Kronos Research. It has now been discovered that this perpetrator has started to move the funds, nearly six months after the initial attack. The hacker transferred 1,314 Ether (ETH), equivalent to $4 million, to a new wallet address. This ETH was then further transferred to another address. The hacker then made 10 transactions of 100 ETH each and sent it to Tornado Cash, a cryptocurrency tumbling tool.

Tornado Cash is an open-source cryptocurrency mixer that operates on platforms compatible with the Ethereum Virtual Machine. These mixing services aim to obscure the trail of crypto transactions, making it extremely difficult to trace the original source of the funds. While the tool was created for privacy purposes, it has unfortunately become a favored choice for hackers looking to launder stolen funds through decentralized exchange platforms. The widespread use of Tornado Cash for illicit transactions prompted the United States government to take action and impose sanctions on its use in August 2022. As a result, the founders of Tornado Cash were charged with money laundering and sanctions violations a year later.

Opinions within the cryptocurrency community vary when it comes to the adoption of privacy tools like Tornado Cash. There is a consensus that developers and creators should not face government persecution solely for creating such applications. On that note, the crypto analytic firm PeckShield has raised the alarm about the movement of funds from the Kronos Research exploit. They have warned that the transfer to Tornado Cash suggests that the hacker is attempting to launder the stolen funds.

The attack on Kronos Capital took place in November 2023, and it involved the exploitation of the firm’s API keys. Initially, the firm denied any loss of funds, but later, an on-chain investigator named ZachXBT revealed that approximately 12,800 ETH, worth $25 million, was stolen and moved into six different crypto wallet addresses. In response to the incident, Kronos Capital temporarily suspended its trading services to conduct an investigation into the loss.

25 thoughts on “Hacker Transfers Funds to Tornado Cash: Kronos Research

  1. This is such a blow to Kronos Research. 😔 It’s disheartening to see cybercriminals getting away with such massive exploits. They need to be held accountable!

  2. I’m glad to see that PeckShield is keeping a close eye on the movement of these funds. It’s important to identify and stop the hacker before they can cash out.

  3. The fact that Kronos Capital suspended its trading services to conduct an investigation shows their commitment to addressing this issue. They’re taking the necessary steps to ensure the safety of their clients’ funds.

  4. It’s disheartening to see how easily these hackers can manipulate transactions and hide their tracks. The entire cryptocurrency ecosystem needs better safeguards against exploitation.

  5. This is a major setback for the cryptocurrency community. It’s disheartening to see stolen funds being moved around freely even months after the initial attack. Something needs to be done.

  6. It’s frustrating that there are still no solid leads on the identity of the hacker. How can they just get away with such a massive crime?

  7. Tornado Cash needs to be shut down! 🚫 It’s gone from being a privacy tool to a haven for money launderers. It’s disappointing that it’s been misused to such an extent.

  8. I hope Kronos Capital is able to recover from this loss and strengthen their security measures to prevent future attacks. Cybersecurity should be a top priority for all businesses.

  9. The fact that the hacker is still able to move the funds after six months is concerning. We need stronger measures to prevent these kinds of attacks.

  10. I’m really starting to lose faith in the security of cryptocurrency. These repeated attacks and successful laundering of stolen funds just highlight the vulnerabilities of the system.

  11. The US government should have imposed sanctions on Tornado Cash much earlier! It’s clear that its misuse has caused significant harm. The founders deserve the charges against them.

  12. It’s astonishing that the hacker managed to steal such a large sum of money by exploiting Kronos Research’s API keys. 🤯 Companies need to prioritize the security of their systems.

  13. It’s frustrating that the hacker is still out there, getting away with the stolen funds. Authorities need to do a better job of tracking and apprehending these criminals.

  14. It’s unfortunate that a tool like Tornado Cash, which was originally created for privacy, has been misused by hackers. We need more regulations to prevent this kind of activity.

  15. This whole situation is just a huge mess. It’s disappointing to see that even after suspending trading services, Kronos Capital hasn’t been able to recover the stolen funds.

  16. I hope PeckShield can provide valuable insights that will help bring the hacker to justice. The cryptocurrency community needs to come together to combat these cyber criminals.

  17. Kronos Capital should have taken stronger security measures to prevent this attack. It’s their responsibility to protect their clients’ assets, and they failed miserably.

  18. I’m losing confidence in the security of virtual currencies. These constant attacks and the ease with which stolen funds are laundered raise serious concerns.

  19. Kudos to ZachXBT for uncovering the truth about the stolen funds. It’s important to have individuals who can investigate these incidents and hold the criminals accountable.

  20. This hacker is definitely trying to cover their tracks by using Tornado Cash. It’s a clever way to launder the stolen funds, but it’s also an abuse of a privacy tool.

  21. Wow, this hacker is relentless! The fact that they’ve managed to move the stolen funds after six months is deeply concerning. How are they still getting away with this?

  22. The incident at Kronos Research just goes to show that no company is immune to cyber attacks. It’s a wake-up call for everyone involved in the cryptocurrency industry.

  23. Developers should be held accountable for the misuse of their creations. 🛠️ The fact that Tornado Cash has become a go-to option for hackers should make its creators responsible for the consequences.

  24. It’s disheartening to see that hackers continue to target the cryptocurrency industry. We need to work together to create a safer environment for investors and prevent these cybercrimes.

  25. Wow, this cyber criminal really pulled off a major heist! 💰 It’s shocking how much money was stolen from Kronos Research. 😮

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