In the middle of a significant crypto market crash, crypto hackers seized the opportunity to buy Ethereum at a discount using stolen funds. On August 5, hackers acquired 16,892 ETH with cryptocurrency robbed from the Nomad bridge hack of August 2022. This purchase occurred as Ether’s price plummeted by over 20%, dropping from around $2,760 to $2,172 within 12 hours, according to Cointelegraph Markets Pro and TradingView.Â
Buying the Dip with Stolen CryptocurrencyÂ
According to blockchain analytics company Lookonchain, the hackers bought Ethereum using 39.75 million purloined Dai tokens. Shortly after, they began transferring the stolen funds to the crypto mixer Tornado Cash, a common tactic used by hackers to obfuscate the transaction trail.Â
PeckShield, a blockchain investigation firm, noted that the Nomad bridge hackers also sent 17.75 ETH to another Ethereum address. To date, the hackers have funneled about 2,400 ETH, valued at roughly $7 million, through Tornado Cash.Â
Hackers Capitalize on Market UncertaintyÂ
In addition to the Nomad bridge funds, stolen assets linked to the Pancake Bunny hack from 2021 are also on the move. Amid market volatility, the hacker converted stolen DAI tokens into ETH. However, according to blockchain investigator Officer CIA, 3.6 million DAI was mistakenly sent to a DAI stablecoin address.Â
Pancake Bunny, a DeFi protocol on the BNB Smart Chain, was targeted in a flash loan attack in 2021. The hackers recently laundered $2.9 million worth of Ether through Tornado Cash on July 8. This case highlights the irreversible nature of sending crypto to unsupported wallets, which can result in permanent loss.Â
