The person who broke into Poloniex’s computer system and stole funds was able to move more than 60% of the funds that were taken in just seven days, even though people were trying to find them.
This hacker is thought to have been behind the attack on the cryptocurrency exchange in late 2023. He or she was able to move over $66 million of the $100 million that was stolen using Tornado Cash, a legal mixing protocol.
Poloniex Hacker Laundered Funds
According to data from blockchain intelligence company PeckShield, the most recent transaction involved sending over 4,400 ETH, which is about $12.8 million, to Tornado Cash. This was part of a larger scheme to launder 22,200 ETH, which is about $66.3 million.
After the breach in mid-November 2023, Poloniex quickly contacted the person responsible, confirming that they were who they said they were and giving a significant $10 million reward for the return of the funds, along with a threat of getting help from international law enforcement if they didn’t cooperate.
Even though Poloniex warned that the hacker’s funds would be frozen, they were able to move more than half of the money they stole in just one week in early May. So far, there has been no public sign that the exchange is making progress in freezing the illegally obtained funds.
Looked at data and found that over 500 trade pairs on Poloniex show signs of dormancy, with about 53% showing little to no daily trading activity as of May 13. A Poloniex representative said that this was partly due to changes in prices, but they did not give a full reason for why so many trading pairs were not active.
