Crypto hackers have capitalized on the recent Ethereum price plunge by purchasing a substantial amount of the cryptocurrency using funds stolen in the 2022 Nomad bridge hack. On August 5th, blockchain analytics firm Lookonchain revealed that the hackers acquired 16,892 ETH, valued at approximately $368 million, by spending 39.75 million DAI. This opportunistic move comes as Ethereum’s price plummeted over 20% in under 12 hours, presenting a lucrative buying opportunity for the hackers.
Following the purchase, the hackers transferred the acquired ETH to the crypto mixer Tornado Cash, an infamous platform known for obfuscating the origins of digital assets. This tactic aims to hinder the traceability of the stolen funds and complicate any potential recovery efforts.
The Nomad bridge hack, which occurred in August 2022, resulted in the theft of over $190 million worth of various cryptocurrencies. The attackers exploited a vulnerability in the bridge’s smart contract, allowing them to siphon off substantial funds. While the identity of the hackers remains unknown, their audacious exploitation of the Ethereum market crash highlights the ongoing challenges faced by the cryptocurrency industry in combating theft and money laundering.
This incident serves as a stark reminder of the risks associated with cryptocurrency investments and the urgent need for robust security measures to protect digital assets. As investigations into the hack and the subsequent purchase unfold, the cryptocurrency community will be watching closely to see if any recovery efforts are successful and whether this incident will further erode investor confidence in the market.
