Ethereum plummeted over 20% in one day, aligning with global market drops.
Hackers used stolen funds to buy 16,892 Ether during market low.
Jump Crypto unstaked and moved millions in Ethereum, raising liquidity concerns.
Following a drop in global stock markets, including major indices such as Japan's NIKKEI and the S& P 500, the cryptocurrency market saw substantial volatility. On August 5, Ethereum's value fell by more than 20% in a single day, from around $2,760 to $2,172.
This drastic decrease coincided with broader financial instability, as evidenced by a historical two-day decline of 22% in Japan's NIKKEI and a 7% fall in both European and US stock markets.
Hackers and Large Sells
Hackers associated with previous exploits of the crypto bridge Nomad and the decentralized finance protocol Pancake Bunny utilized stolen funds to acquire Ether at reduced rates.
https://twitter.com/PeckShieldAlert/status/1820354961655652429
Notably, an entity linked to the Nomad bridge hacker used 39.75 million stolen Dai tokens to buy 16,892 ETH, then transferred the stolen funds to crypto mixer Tornado Cash. Crypto hackers often use these services to deter onchain traceability and usually do so without returning the stolen funds.
Blockchain investigation firm PeckShield also noted that the hacker sent 17.75 ETH to an intermediary Ethereum address. At the time of writing, the hacker transferred approximately 2,400 ETH (worth around $7 million) to Tornado Cash.
This purchase occurred nearly simultaneously with another large-scale operation where Jump Crypto unstaked and transferred hundreds of millions worth of Ethereum to exchanges, prompting concerns about potential liquidity issues within the firm.
Blockchain Analytics and Security Observations
Blockchain analytics firms such as Lookonchain and PeckShield have closely monitored these activities. Their observations revealed that the stolen funds were often laundered through crypto mixers like Tornado Cash to obscure their origins.
Moreover, the recent transactions have reawakened discussions about the security of blockchain protocols and the effectiveness of current regulatory frameworks in tracking and mitigating such exploits.
The immediate aftermath of these transactions has raised concerns about decentralized finance platforms and the processes by which they can be misused. While some market participants continue to buy the drop, the overall attitude is cautious, focusing on potential regulatory responses and more market falls. The ongoing situation underscores the complex interplay between market dynamics and cybersecurity in the digital age.
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The post Crypto Hackers Capitalize on Market Crash to Purchase Ethereum with Stolen Funds appeared first on Crypto News Land.
