Remilia DAO Hack Tornado Cash Traced as Source of 43 Million in Stolen ETH
Key Points of Interest
• Tornado Cash received over $4.3 million in stolen crypto from the Remilia DAO hack.
• Suspicions suggest that Remilia DAO might have been behind the attack.
• The incident sheds light on the challenges of recovering stolen crypto and emphasizes the importance of strong security measures in DeFi.
A significant blow has been dealt to the decentralized organization Remilia DAO, renowned for its Milady Maker NFT collection, due to a recent hack. According to CertiK, a blockchain analysis firm, more than $4.3 million in stolen cryptocurrency has been tracked to the unauthorized mixer, Tornado Cash.
CertiK announced in a recent tweet the discovery of a deposit of 1,209.5 Ether (ETH), equivalent to around $4.3 million, into Tornado Cash. It is suspected that this deposit originated from addresses linked to the March hacking incident involving Remilia DAO.
After the hack on March 16th, there was a delayed response from Remilia and Milady owner Krishna Okhandiar, also known as Charlotte Fang. Investigations later revealed that the stolen funds had been quickly laundered through a specific wallet.
The theft of NFTs added fuel to the fire, as Dumpster DAO shared Fang’s findings, including a screenshot of the compromised address and a breakdown of the looted assets. Blockchain data verified the sale of the Milady NFTs associated with the incident, with subsequent transfers totaling 1 million ETH to another wallet.
Despite the evidence, doubts linger among certain individuals who suspect that Remilia might have orchestrated the hack themselves.
The case of Remilia underscores the persistent challenges in decentralized finance (DeFi), particularly the complexities surrounding the identification and recovery of stolen cryptocurrency. The misuse of tools like Tornado Cash by cybercriminals led to its prohibition by US authorities in August 2022.
As investigations unfold, tension within the cryptocurrency community remains high, emphasizing the critical need for enhanced security protocols in DeFi.
Additional Reading:
• Reports indicate that crypto hackers have stolen over $19 billion since 2011.