Crypto Hackers capitalized on the recent market downturn to procure heavily discounted Ether using misappropriated funds from previous cyber heists.

On August 5, 16,892 Ether (ETH), valued at significantly reduced rates, were acquired utilizing stolen cryptocurrency from a hack on the Nomad crypto bridge dating back to August 2022. This transaction occurred as Ether’s value plummeted by over 20%, dropping from approximately $2,760 to $2,172 in under 12 hours, as reported by Cointelegraph Markets Pro and TradingView.

Utilizing Illicit Gains to Buy the Dip

Blockchain analytics firm Lookonchain highlighted that the Nomad bridge assailant employed 39.75 million stolen Dai (DAI) tokens to purchase 16,892 ETH. Shortly after this acquisition, the hacker initiated the transfer of the misappropriated assets to the crypto mixer Tornado Cash, a common tactic used to obfuscate on-chain traceability and evade detection.

In addition to Lookonchain’s insights, blockchain investigation firm PeckShield observed that the Nomad exploiter concurrently dispatched 17.75 ETH to an intermediary Ethereum address. At the time of this report, approximately 2,400 ETH (worth around $7 million) had been transferred to Tornado Cash by the hacker.

Capitalizing on Market Instability

Furthermore, stolen funds connected to the Pancake Bunny hack from three years ago have also been mobilized amid the prevailing market volatility. The perpetrator aimed to exploit the depreciated crypto prices by converting their stolen DAI tokens to ETH. However, blockchain investigator Officer CIA disclosed that 3.6 million DAI was inadvertently sent to a DAI stablecoin address.

Pancake Bunny, a decentralized finance protocol on the BNB Smart Chain, fell victim to a flash loan attack in 2021. It is crucial to note that sending cryptocurrency tokens to unsupported wallets can result in irreversible loss of funds.

Recent Developments

On July 8, the Pancake Bunny hacker siphoned $2.9 million worth of Ether through Tornado Cash, illustrating a persistent strategy among cybercriminals to leverage market conditions for their advantage.