The infamous Hundred Finance hacker, who stole $7.4 million in crypto assets in a security breach last year, resurfaced on May 1 after a period of inactivity. The hacker was seen moving crypto assets from Curve’s decentralized exchange, withdrawing ETH and USDT worth about $800,000 that had previously served as liquidity on Curve. The hacker then converted the USDT and other altcoins into Ethereum, increasing their Ether holdings by over $1 million. Currently, the hacker holds a total of $6.48 million worth of various crypto assets in their Ethereum wallet.
The security breach at Hundred Finance, a project on the Optimism blockchain, occurred in 2023 when the hacker exploited the exchange rate for hWBTC by donating 200 WBTC, draining the project’s lending pools. The exploit was a combination of flash loans, critical rounding errors, and smart contract manipulation. The recent movement of funds from the attack mirrors a similar incident involving the Poloniex exchange, where the attacker transferred $33 million worth of assets after months of dormancy.
Analysts believe that it may be challenging for the Hundred Finance hacker to conceal the origin of the assets or convert them to fiat without leaving a trace. With regulators cracking down on crypto mixers like Samourai Wallet and Tornado Cash, which are commonly used for money laundering, criminals may find it increasingly difficult to launder stolen funds. The creators of Samourai Wallet were recently arrested by the US Department of Justice for alleged money laundering activities, while the co-founders of Tornado Cash were indicted for enabling over $1 billion in money laundering through their platform.
Global regulators are tightening regulations on crypto users who attempt to hide their transaction histories. The European Parliament voted to ban crypto mixers as part of new anti-money laundering regulations, signaling a broader crackdown on illicit activities in the crypto space. With mounting pressure on cybercriminals and increased scrutiny on money laundering activities, the days of using crypto mixers to launder stolen funds may be numbered. It remains to be seen how the Hundred Finance hacker will navigate the challenges of concealing the origin of the stolen assets and converting them into untraceable forms.
