TempleDAO hacker moves assets to Tornado Cash

The unknown attacker who breached the TempleDAO DeFi project transferred the stolen funds to the Ethereum mixer Tornado Cash.

The @templedao exploiter is starting to move funds via @TornadoCash https://t.co/UOl3RJjExq pic.twitter.com/SReMSq573P

— PeckShield Inc. (@peckshield) October 16, 2022

On October 11, the attacker exploited a bug in TempleDAO’s smart contract and stole 1831 ETH (~$2.3 million) from one of the staking vaults.

The protocol team promised to return the funds to affected users.

The hacker initially sent a 0.1 ETH transaction to the mixer service, and then made several transfers of 100 ETH.

On August 8, 2022, OFACplaced Tornado Cash on the sanctions list. The restrictions affected 39 Ethereum addresses and 6 USDC addresses on suspicion of laundering more than $7 billion.

On August 12, Dutch authorities arrested the service’s developer Alexey Pertsev. The court ordered him detained at least until the end of October.

Kraken CEO Jesse Powell called the sanctions against Tornado Cash unconstitutional, while TRM Labs analysts called them a challenge to compliance.

Coin Center, an organization promoting and defending the crypto industry, filed a lawsuit against OFAC over the measures against the mixer.

Earlier this month, the hacker behind the decentralized exchange Transit Swap used the mixing service.

This month has been a record for the amount of cryptocurrency stolen by hackers in 2022, according to Chainalysis. Since October 1, DeFi protocols have suffered 11 attacks totaling $718 million.

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