News View Non-AMP

Tornado Cash Involved in 2021 DAO Maker Crypto Hack? Know the Truth

Published by
Qadir AK

According to PeckShield, $500,000 in Dai has been moved through Tornado Cash–a crypto mixer–indicating that it may be the source of stolen tokens from a decentralized finance (Defi) protocol.

In simpler terms, crypto mixers make it more difficult to figure out where a token is going. This makes it harder for anyone to track.

In August 2021, the crypto fundraising platform Dao Maker (not related to Maker DAO) suffered a hack. As a result, $7 million in various stablecoins and ether were lost. on-chain data shows that the funds were sent to two wallets.

One of the cryptocurrency wallets sent about 3800 ether, worth approximately $6.2 million, to Tornado Cash. The other wallet holding the remaining balance remained inactive until today, according to data gleaned from examining blockchain.com records.

Tornado involved in crypto.com laundry

Prior to this incident, Tornado was also used in a laundering scheme where $15 million worth of ether was stolen from Singapore-based Crypto.com.

The frequent connection between ‘Tornado Cash,’ alleged money laundering, and stolen funds has prompted a discussion regarding whether it is guilty of money laundering. The protocol’s creator said that the system isn’t governed by any single entity and is intended to be unstoppable, adding that it was not his intention to support illegal activities.

In August, the US Treasury’s Office of Foreign Assets Control (OFAC) banned tornado Cash, restricting all US citizens and firms from interacting with it. It’s unclear if this decision was related to the Dao Maker hack.

The US move against Tornado Cash highlights the ongoing debate about whether crypto mixers are helpful or harmful to the ecosystem. On one hand, they can add an extra layer of privacy for users. On the other hand, they can also be used to launder money.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

Grayscale Announced the Launch of Two New Bitcoin ETFs – Here Are They!

Grayscale, a leading crypto asset manager, has introduced two new Bitcoin ETFs, offering a fresh…

April 2, 2025

Remember This Name! Remittix Presale Becomes the Top Predicted of 2025 as Project Raises Almost $15M in Record Time

In a year marked by conservatism and a sentiment shift in crypto, one name is…

April 2, 2025

Has Elon Musk Forgotten About Dogecoin (DOGE)?

Particularly for Dogecoin (DOGE), Elon Musk, the billionaire entrepreneur CEO of Tesla and SpaceX, has…

April 2, 2025

Shiba Inu Drops 9%, but RUVI AI’s (RUVI) Token Might Be the Meme Coin Killer as Investors Rush to Claim their Bonus

The cryptocurrency market is no stranger to ups and downs, and this week, Shiba Inu…

April 2, 2025

XRP Stalls at $2—Is Ozak AI ($OZ) the Next Big Crypto Breakout?

XRP has struggled to break past the $2.5 mark despite strong market momentum. Meanwhile, Ozak…

April 2, 2025

Rexas Finance (RXS) vs. Shiba Inu (SHIB): Will SHIB Rebound, or is 2025 the Year of RXS?

Investors must make a crucial choice as the bitcoin market develops: stick to well-known meme…

April 2, 2025