The Hundred Finance hacker, responsible for a $7.4 million crypto theft, resurfaced after a year of inactivity on May 1 and started moving crypto assets from Curve’s decentralized exchange. Etherscan data revealed that the hacker withdrew ETH and USDT worth about $800,000 that had previously served as liquidity on Curve. Following the withdrawal, the hacker converted the USDT and small amounts of altcoins into Ethereum, increasing their Ether holdings by over $1 million. The hacker now holds $6.48 million worth of various crypto assets, including Ether, DAI, Wrapped Ether, FRAX, and Wrapped Bitcoin. Hundred Finance, a project on the Optimism blockchain, suffered a security breach in 2023, losing $7.4 million in assets due to a combination of flash loans, critical rounding error, and smart contract manipulation.
The movement of funds from the Hundred Finance attack mirrors a recent report on a similar incident involving a security breach at Poloniex, where the attacker transferred funds after months of dormancy. In 2023, the hacker stole assets worth $33 million from the exchange and recently transferred 501 BTC (approximately $32 million) to three new wallet addresses to hide the origin of the assets. Analysts believe it may be challenging for the Hundred Finance hacker to conceal the origin of the assets or convert them to fiat without leaving a trace. Crypto mixer services such as Samourai Wallet or Tornado Cash, which the hacker used to launder the funds, are no longer viable options for criminals due to increased regulatory scrutiny. The co-founders of Samourai Wallet and Tornado Cash have been arrested for enabling money laundering activities.
Global regulators are cracking down on crypto users who hide their transaction histories, with the European Parliament voting to ban crypto mixers as part of new anti-money laundering regulations. The crackdown on these services is making it more difficult for cybercriminals to launder stolen funds and convert them into fiat currency. The hacker in the Hundred Finance attack may struggle to break the traceability chain that links the stolen funds to the hacked wallet before cashing them out. The hacker’s exploit originated from platforms like Tornado Cash, but with regulators intensifying their efforts to combat money laundering in the crypto space, these services are no longer a safe haven for criminals. The recent arrests of the founders of Samourai Wallet and Tornado Cash demonstrate the increased regulatory scrutiny on crypto-related money laundering activities.
