After witnessing the biggest scam in cryptocurrency history on Axie Infinity Ronin bridge, the community is seeing the long process through which the hackers try to remove their loot from the system. According to Wu Blockchain, several transactions have occurred over the past few hours from the suspected Ethereum address.
As per the detail of the transaction, the first attempt of moving 1,000 ETH [~$3.5 million] was spotted five hours ago, at the time of press. The transfer was to another wallet, however, soon after another 200 ETH was sent to the Ethereum mixing service, Tornado Cash. Following this, there were many more Ethereum sent to the mixer. The mixers are private third-party tools that help users maintain their anonymity.
Unlike regular crypto users, the hackers cannot approach the exchanges to liquidate their haul. The exchanges have also increased efforts to know their customers through KYC procedures. With increasing regulations around the world on cryptocurrencies, most exchanges have to abide by the KYC approach.
Despite such efforts, the SlowMist team informed the community that the hackers had transferred 3,750 ETH to Huobi. Following Huobi, other exchanges like Crypto.com and FTX were also on the receiving end of the loot. The exchanges have pledged to take action against this. However, this does add to the negative image the traditinalists were trying to create for the industry.
While there were countries open to exploring the potential of cryptocurrencies, there were many who were apprehensive. While El Salvador has accepted Bitcoin, the largest cryptocurrency as a legal tender, there was China has banned the use of any cryptocurrencies.
Amidst the growing value of the hacks, the implications were falling on the shoulders of an average trader. With heavy restrictions, the everyday trader is trying to maneuver the system and book some profits, while mixers like Tornado Cash have become an escape for hackers to mix their theft with a large sea of legitimate cryptos.
Nevertheless, it will be some time until the hackers can successfully mix their loot and find a venue to cash out.