500,000 DAI From DAO Maker Exploit Was Sent Through Tornado Cash, Security Analysts Report

On September 8, the crypto information and astute declaration auditing steadfast Certik revealed that 500,000 DAI was sent done the Tornado Cash mixing level aft the funds were stolen successful August 2021. The integer assets primitively stemmed from the DAO Maker breach that saw the nonaccomplishment of much than $7 cardinal successful ERC20 tokens and stablecoins.

Address Directly Connected to DAO Maker Hack Sends 500,000 DAI Through Tornado Cash

Despite the U.S. authorities banning the Ethereum-based mixing exertion Tornado Cash, the exertion is inactive utilized regularly. On Thursday, the crypto information institution Certik tweeted astatine 7:30 p.m. (ET) astir the question of DAI. “We are seeing a question of 500,000 DAI to Tornado Cash from EOA 0x0B789,” Certik said. “The code is straight connected to the DAO Maker exploiter who stole funds from [the DAO Maker]. Stay harmless retired there.”

DAO Maker is simply a crowdfunding decentralized concern (defi) exertion and is not the aforesaid task arsenic Makerdao, the issuer of the stablecoin DAI. The crypto-fueled fundraising protocol DAO Maker was hacked successful August 2021, according to an ask-me-anything (AMA) event featuring DAO Maker’s CEO Christoph Zaknun. The hackers were capable to siphon $7 cardinal successful ERC20 tokens and stablecoins from 5,251 idiosyncratic accounts. At the time, the blockchain steadfast Cipherblade elaborate it was conducting an probe into the DAO Maker exploit.

In summation to Certik, the crypto information steadfast Peckshield confirmed that 500,000 DAI stemming from the August 2021 DAO Maker exploit was sent done Tornado Cash. “Peckshield has detected the code labeled arsenic DAO Maker exploiter has transferred 500K DAI to Tornado Cash,” the Peckshield alert strategy connected Twitter noted. It’s been 32 days since the U.S. Treasury Department’s watchdog the Office of Foreign Asset Control (OFAC) banned Tornado Cash.

OFAC’s determination to prohibition Tornado Cash was met with criticism toward the Treasury Department’s decision. The non-profit that focuses connected argumentation issues, Coin Center, said connected August 15 that OFAC’s Tornado Cash prohibition “exceeds statutory authority,” and said the enactment planned to “engage” with the Treasury watchdog. Furthermore, Coinbase announced connected September 8, that the institution is “funding a suit brought by six radical challenging the U.S. Treasury Department’s sanctions of the Tornado Cash astute contracts.”

What bash you deliberation astir the 500,000 DAI shuffled done the Tornado Cash level stemming from the DAO Maker project? Let america cognize what you deliberation astir this taxable successful the comments conception below.