Hackers Exploit ETH Price Drop, Acquire Millions in Cryptocurrency

As the price of ETH dropped over 20% on Aug. 30, hackers took advantage of the dip using stolen cryptocurrency.

According to blockchain security firm PeckShield, the perpetrators behind the 2021 hack on Binance Smart Chain-based DeFi protocol Pancake Bunny bought 2,922 ETH for 7.8 million DAI. The community contributor detected the PancakeBunny exploiter-labeled address buying ETH when the market dropped. The exploiter swapped 7.8 million DAI for 2,922 ETH.

The DeFi protocol was exploited in a 2021 flash loan attack, resulting in $46 million worth of tokens being siphoned off and swapped for tokens like BNB, USDT, and DAI. The attack caused the project’s native token, BUNNY, to crash.

Last month, the exploiter’s address resurfaced, transferring 1,002 Ether to the crypto mixer Tornado Cash, a service that makes fund tracing difficult for authorities. At that time, the attacker’s wallet held $11.4 million in Dai.

Similarly, attackers behind the $200 million hack of the cross-chain token bridge Nomad have also acquired ETH, according to analytics firm Lookonchain. Nomad Bridge allowed users to send funds across multiple blockchains. The attack stemmed from a vulnerability in the smart contract where tokens sent via the bridge are initially deposited.

On August 30, 2024, the attacker spent 39.75 million DAI to acquire 16,892 ETH before moving them through Tornado Cash in a series of transactions for 100 ETH each. In total, the attacker moved approximately 2,400 ETH to the privacy mixer.

Over the years, the attacker has moved the stolen assets on multiple occasions, with over $1.5 million laundered via Tornado Cash in January 2023. Prior to that, $7.5 million was moved to an unknown address.

As of publication time, one of the Nomad bridge attacker’s wallets held just over 14,500 ETH valued at over $33 million.

The recent moves come as ETH recorded its largest drop in 2024, presenting a buying opportunity. According to analysts, the cryptocurrency has lost key support levels, and the price is expected to dip further.

The price drop occurred as the broader crypto market saw over $1 billion in liquidations recorded in 24 hours.

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