Blockchain security firm CertiK has flagged the transfer of nearly $1 million in Ether from wallets linked to the CoinStats exploit to the controversial crypto mixing protocol, Tornado Cash. The transactions, involving 311 ETH, occurred less than a week after CoinStats reported an ongoing investigation into a security breach that affected 1.3% of its total wallets.

Despite facing legal challenges and significant crackdowns, Tornado Cash continues to be a popular platform for laundering stolen funds. In August 2022, the US Department of the Treasury blacklisted the service, prohibiting its use by US citizens, residents, and companies. Furthermore, several Tornado Cash developers have faced legal repercussions for their involvement in facilitating money laundering.

This incident underscores the importance of robust security measures in the DeFi space, particularly as it pertains to BRC-20 tokens and other Ethereum-based assets. As the investigation continues, it is expected that more information will be shared to support any victims and ensure the security of the crypto infrastructure.