• The Raydium hacker allegedly transferred 1,774.5 ETH to Tornado Cash to cover their tracks.
• Tornado Cash is a Decentralized privacy and data protection platform developed on the Ethereum blockchain.
• Raydium lost over $2 million in the LP compromise.
A hacker has recently taken advantage of a bug in the Raydium stablecoin and wrapped SOL’s liquidity pools. This malicious actor was able to drain Raydium’s liquidity pools of over $2 million, and now it appears that they are attempting to cover their tracks.
Etherscan, a blockchain analytics and monitoring platform, has revealed that the Raydium hacker has transferred 1,774.5 ETH to Tornado Cash in an effort to hide their identity. Tornado Cash is a Decentralized privacy and data protection platform developed on the Ethereum blockchain. It allows users to deposit and withdraw Ethereum’s ERC-20 tokens and ether (ETH) using different wallet addresses, allowing malicious actors to hide their transaction history.
The incident occurred on December 16, when Raydium announced on Twitter that “owner authority was overtaken by an attacker” who had allegedly drained the protocol’s liquidity pools. The attacker was able to verify the drainage without burning Liquidity Pool tokens, and now it appears they are trying to cover their tracks by sending the funds to a privacy-focused platform.
Fortunately, the Raydium team is aware of the attack and has already taken steps to mitigate the situation, including reimbursing affected users and allocating more funds to cover the losses. They are also actively investigating the incident and are working with law enforcement to identify the hacker.
In the meantime, the Ethereum community is actively tracking the hacker’s movements and is warning others to remain vigilant. It is unclear what the hacker’s next move is, but it is clear that they are attempting to hide their tracks by using a privacy-focused platform. Although this incident is a major setback for Raydium, it is a stark reminder of the importance of security in the blockchain space.