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Raydium Exploit Moves $2.7M To Crypto Mixer Tornado Cash

Delbert Williams IIBy No Comments2 Mins Read

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

While security teams at various exchanges continue to fend off hacker attacks, funds continue to flow into Tornado Cash, a licensed cryptocurrency mixer.

An attack against a Solana-based decentralized finance (DeFi) protocol occurred on December 16th. According to the developer, the hackers hijacked the accounts of exchange owners and used them to steal USD Coin (USDC), Wrap He Solana (wSOL), and Raidium.

After initial research, the DeFi protocol determined that the exploit was due to a vulnerability in the decentralized exchange’s smart contract. This allowed the administrator to withdraw the liquidity pool as a fee.

Due to the loss, the Raydium team also proposed a plan to compensate hack victims. This involves using the Treasury of Decentralized Autonomous Organizations to purchase the missing tokens and repay those affected by the exploit.

In a report released Jan. 9, blockchain analytics firm Chainalysis said that although Tornado Cash sanctions have had some impact on mixers, they can be easily “unplugged” compared to centralized services. No organization pointed out. Websites can be deleted, but smart contracts can run indefinitely and can continue to be used by anyone at any time.

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

Hackers continue to actively move funds, but they don’t always win. Recently, centralized cryptocurrency exchanges Binance and Huobi were able to detect and freeze funds deposited by Harmony One hackers. Binance CEO Changpeng Zhao reported that his security team at the company worked with his Huobi to recover 121 bitcoins (BTC) worth $2.5 million at the time from hackers.