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 Invest 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

Bitcoin, Ethereum, XRP Price Prediction for Next Week (28th July – 2nd Aug 2025)

The crypto market continues to gain traction, adding 0.76% to reach a $3.89 trillion market…

July 27, 2025

Crypto News Today: Bitcoin Eyes $132K After Holding Above $118K

Bitcoin is holding steady above $118,000 despite the recent ups and downs in the market.…

July 27, 2025

Can XRP Price Hit Four Digits in 2025?

Could XRP really reach $1,000? While this may sound far-fetched to many, Jake Claver, director…

July 27, 2025

XRP, Sui, and Pudgy Penguins Set to Hit New All-Time Highs Next Week: Top Altcoins to Watch

The crypto market is starting to go more mainstream, especially after the new GENIUS Act…

July 27, 2025

Crypto Regulations in the USA 2025

The US crypto regulation has changed dramatically in 2025, with the Trump administration adopting a…

July 26, 2025

Algorand Price Prediction 2025, 2026 – 2030: Will ALGO Price Hit $1?

Story Highlights The live price of the Algorand is Price predictions suggest ALGO could reach…

July 26, 2025