Hacker Funnels Stolen Funds to Tornado Cash Despite Cysic's 10% Bounty Offer
Following an exploit on Cysic's bridge that allowed the minting of 10 million tokens on BNB Smart Chain, the perpetrator transferred $744,000 worth of ETH and BNB into Tornado Cash.
Following the Cysic Foundation's proposal of a 10% recovery bounty to the perpetrator, the wallet address connected to the Cysic bridge exploit funneled approximately $744,000 worth of digital assets into Tornado Cash on Friday.
Data from blockchain security firm PeckShield indicates that the address channeled 300 Ether (ETH) along with 30.4 BNB into the cryptocurrency mixing service.
On Saturday, the perpetrator took advantage of a bridge security flaw to create 10 million Cysic (CYS) tokens on BNB Smart Chain. In response, Cysic halted the bridge's operations and placed the recipient address on a blacklist, successfully freezing approximately 2.8 million of the recently created tokens. According to the foundation's statement, its mainnet along with existing assets held in user wallets remained secure and unaffected.
By the following Thursday, the Cysic Foundation extended an offer to the perpetrator consisting of a 10% bounty as compensation for the return of 275.872 ETH, valued at approximately $665,000, which constitutes about 90% of the identified Ether proceeds.
Tornado Cash operates by combining deposits from numerous addresses, thereby making the digital assets more difficult to track. Data from Akham shows that at the time of publication, the perpetrator's Ethereum wallet contained merely $45 worth of ETH.
A request for comment regarding fund recovery efforts was sent to the Cysic Foundation by Cointelegraph, however no response had been received prior to publication.