Hackers use stolen funds to buy ETH amid price crash

When the price of ETH dropped by more than 20% on August 30, hackers appeared to seize the opportunity to buy into the dip using stolen cryptocurrencies.

According to blockchain security firm PeckSheild, the perpetrators behind the 2021 attack on Binance Smart Chain-based defi protocol Pancake Bunny purchased 2,922 thousand ETH in exchange for 7.8 million DAI.

The Defi protocol was exploited in a flash loan attack in 2021, in which $46 million worth of tokens were stolen and swapped for tokens like BNB, USDT, and DAI. The attack caused the price of the project’s native token, BUNNY, to plummet.

Last month, the exploiter’s address went dormant and transferred 1,002 Ether to crypto mixer Tornado Cash. The service allows malicious actors to make it difficult for authorities to track funds.

The attacker reportedly had $11.4 million worth of Dai (DAI) in his wallet at the time.

The attackers behind the $200 million attack on cross-chain token bridge Nomad also purchased ETH, according to analytics firm Lookonchain.

Nomad Bridge allowed users to send money across multiple blockchains. The attack was caused by a vulnerability in the smart contract where tokens sent over the bridge were initially deposited.

On August 30, 2024, the attacker spent 39.75 million DAI to acquire 16,892 ETH before moving it from Tornado Cash in a series of transactions of 100 ETH each. In total, the attacker moved approximately 2400 ETH into the privacy mixer.

The attacker has moved stolen assets multiple times over the years, with more than $1.5 million laundered through Tornado Cash in January 2023. Prior to that, $7.5 million was moved to an unknown address.

As of press time, one of the Nomad bridge attackers had over 14,500 ETH in his wallet, worth over $33 million.

The recent moves come as ETH recorded its biggest drop of 2024, presenting a lucrative buying opportunity. According to analysts, the cryptocurrency has lost key support levels and the price is expected to drop further.

The drop in price comes after the overall cryptocurrency market recorded liquidations of over $1 billion in 24 hours.