Poloniex Hacker Breaks Six-Month Silence, Shifts Stolen Assets Stealthily

The perpetrator of the November Poloniex hack has resurfaced, moving portions of the stolen funds through the infamous mixer Tornado Cash to anonymize transactions. This dormant hacker's recent activity resembles the tactics of the North Korean hacking group Lazarus, who have orchestrated similar large-scale crypto hacks and laundered over $200 million in the past three years.

Poloniex Hacker Resurfaces, Moving Stolen Assets in Stealthy Maneuver

Six Months of Silence Broken: Poloniex Hacker Stirs

The cyberattacker responsible for the infamous Poloniex hack of November 2023 has re-emerged, making clandestine movements of the stolen assets. This dormant period, spanning over half a year, has ended with a flurry of activity.

According to Arkham Intelligence, a wallet linked to the Poloniex hacker sprang back into action on Tuesday, May 7. Two significant transactions were detected: one involving the transfer of 1126 Ethereum (ETH), valued at approximately $3.5 million, and another, larger transaction of 501 Bitcoin (BTC), worth roughly $32 million, which occurred on April 30.

Tornado Cash: The Tool of Choice for Anonymity

In a departure from previous tactics, the recent ETH transfer took a more covert route. Instead of being directly sent to another wallet, the hacker employed the notorious mixer Tornado Cash. This tool, known for its ability to obscure cryptocurrency transactions, was utilized to launder the stolen funds by dispersing them across multiple wallets, effectively obfuscating their trail.

Lazarus: A Suspect with Striking Resemblances

While the true identity of the Poloniex hacker remains elusive, the modus operandi bears striking similarities to the North Korean-backed hacker group Lazarus. The magnitude of the Poloniex loot echoes previous large-scale thefts orchestrated by Lazarus, including the Harmony Protocol hack ($100 million), the Stake.com heist ($41 million), and the Atomic Wallet cyber attack ($25 million).

Furthermore, the use of Tornado Cash in the Poloniex hack mirrors Lazarus's documented tactics. The mixer has been a preferred tool for the group, enabling them to conceal transaction paths and evade detection. Over the past three years, Lazarus has successfully executed over 25 hacks, amassing over $200 million in illicit gains.

Poloniex Hack: A Major Loss for the Industry

The Poloniex hack of 2023 stands as a significant setback for the cryptocurrency industry. The stolen assets, totaling $170 million in value, comprised 25,563 ETH, 305,042 TRX, 626 BTC, and 364,292 BTCT. The hacker's recent movements have sparked concerns about potential laundering of the remaining stolen funds.

Legal Action and Regulatory Challenges

In August 2023, the US Justice Department imposed sanctions on Tornado Cash for its facilitation of money laundering by illicit actors. The anonymity of crypto hacks and the presence of numerous malicious players pose significant challenges in attributing the Poloniex hack to Lazarus or any other group.

Implications and Future Outlook

The Poloniex hack continues to cast a shadow over the cryptocurrency industry. The recent resurgence of the attacker serves as a sobering reminder of the ongoing threats posed by cybercriminals. While regulatory bodies and law enforcement agencies intensify their efforts to combat these threats, the need for increased vigilance and robust security measures remains paramount.