New Development in $190 Million Cryptocurrency Scam: Could Be Money Laundering

An address responsible for the Nomad Bridge attack transferred 14,500 Ethereum worth approximately $35.2 million to controversial cryptocurrency mixer Tornado Cash.

According to an announcement made on the X account of blockchain security firm PeckShield, the transaction suggests that the attackers were trying to hide the source of the funds and were likely planning to cash them out.

This transfer follows another transaction made on August 5, when the price of Ethereum dropped by 20 percent. At that time, 16,892 Ethereum was purchased using funds linked to Nomad Bridge.

$190 million was purchased

Nomad Bridge lost approximately $190 million in August 2022 when its developers made a faulty software update. This update allowed anyone to withdraw funds.

At the time, ethical hackers recovered and returned more than $22 million in funds. Nomad Bridge was re-established later that year.

Tornado Cash is known for being an open-source, secure cryptocurrency mixer that makes it significantly harder to track the source of funds.

Various regulatory bodies around the world have labeled Tornado Cash’s activities as problematic and illegal. Most recently, Tornado Cash developer Alexey Pertsev was denied bail after appealing a five-year, four-month prison sentence in the Netherlands.