Nomad Bridge Exploitation and Fund Transfer

An address linked to the Nomad Bridge exploitation transferred 14,500 ether (around $35.2 million) of stolen cryptocurrency to the controversial mixer Tornado Cash, as reported by blockchain security company PeckShield.

This action indicates that the attackers are attempting to hide the origin of the stolen funds, likely in an effort to convert them into cash.

Previously, another transfer occurred on August 5, coinciding with a 20% drop in ether’s price, during which 16,892 ether was acquired using funds associated with Nomad Bridge.

In August 2022, Nomad Bridge suffered a loss of approximately $190 million after a flawed software update permitted unauthorized withdrawals. Ethical hackers managed to recover over $22 million of the lost funds, and the bridge was subsequently relaunched later that same year.

Tornado Cash is a non-custodial, open-source cryptocurrency mixer that complicates the tracking of fund origins, a situation viewed negatively by regulators. Recently, Tornado Cash developer Alexey Pertsev was denied bail in the Netherlands following a prison sentence appeal.

As of now, ether’s price has declined by 3.21% today, according to The Block’s Ether Price Page.