500,000 DAI From DAO Maker Exploit Was Sent Through Tornado Cash, Security Analysts Report – Bitcoin News

Certik, a crypto security firm and smart contract auditor revealed on September 8 that the Tornado Cash Mixing Platform had received 500,000 DAI after funds were stolen from them in August 2021. Original source of the digital assets was the DAO Maker attack that resulted in the theft of $7,000,000 worth ERC20 tokens, stablecoins, and other crypto assets.

DAO Maker Hack Connects to Address directly Sends 500,000 DAI through Tornado Cash

The application, which is based on Ethereum and banned by the U.S. government Tornado Cash in its entirety, can still be used frequently. Certik, a crypto security firm, tweeted Thursday at 7:30 PM (ET) regarding the DAI movement. “We are seeing a movement of 500,000 DAI to Tornado Cash from EOA 0x0B789,” Certik said. “The address is directly connected to the DAO Maker exploiter who stole funds from [the DAO Maker]. Stay safe out there.”

DAO Maker (a crowdfunding decentralized finance application) is not the same as Makerdao. Makerdao is the issuer for the stablecoin DAI. The crypto-fueled fundraising protocol DAO Maker was hacked in August 2021, according to an ask-me-anything (AMA) event featuring DAO Maker’s CEO Christoph Zaknun. Hackers were able to steal $7 million worth of ERC20 tokens, stablecoins and other crypto-based funds from 5251 users accounts. The blockchain company Cipherblade stated that it was investigating the DAO Maker exploit at the time.

Peckshield, a crypto security company, confirmed Certik and that Tornado Cash received 500,000 DAI from August 2021 DAO Maker exploit. “Peckshield has detected the address labeled as DAO Maker exploiter has transferred 500K DAI to Tornado Cash,” the Peckshield alert system on Twitter noted. It’s been 32 days since the U.S. Treasury Department’s watchdog the Office of Foreign Asset Control (OFAC) banned Tornado Cash.

OFAC’s move to ban Tornado Cash was met with criticism toward the Treasury Department’s decision. The non-profit that focuses on policy issues, Coin Center, said on August 15 that OFAC’s Tornado Cash ban “exceeds statutory authority,” and said the organization planned to “engage” with the Treasury watchdog. Furthermore, Coinbase announced on September 8, that the company is “funding a lawsuit brought by six people challenging the U.S. Treasury Department’s sanctions of the Tornado Cash smart contracts.”

Do you have any thoughts about the Tornado Cash platform that shuffled 500,000 DAI from the DAO Maker project’s DAO Maker? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been an active member ever since. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for Bitcoin.com News, with over 6,000 articles on disruptive protocols.