Drift-Linked Wallet Sends $54.8 Million in ETH to Tornado Cash
Background
Background
The April 1 exploit drained Drift's Solana vaults after the attacker gained admin powers, introduced a fake token and used it to borrow out real liquidity, with Drift putting the haul at $295.7 million, led by $159.3 million in JLP and $71.4 million in USDC, most of which was later swapped and bridged to Ethereum. In June, Drift said forensic firm Mandiant attributed the attack to UNC6862, a North Korean threat group. Drift's relaunched exchange now runs as Velocity, and DFX recovery token claims opened on Oct. 1 against a pool that held about 3.1 million USDT at launch. Tornado Cash, the mixer used for the transfers, was sanctioned by the U.S. Treasury in 2022 for allegedly helping launder criminal proceeds.
Wallets tied to the April 1 Drift Protocol exploit moved 25,700 ETH — about $61.56 million at current prices, the figure reported in the source body, while the headline cited $54.8 million — into the mixer Tornado Cash in batches over roughly two hours on Tuesday. The addresses had been inactive for about two months before the transfers.
The deposits are the second known mixing round by the exploiter, after about 23,095 ETH was sent to Tornado Cash on July 23 and 24, and they move a large part of the unrecovered haul further from recovery as Drift's DFX recovery pool pays early claimants roughly a penny per dollar of verified loss.
Arkham Intelligence data shows the deposits arrived in batches of 100 ETH — about $237,800 each — plus smaller 10 ETH chunks, sizes that match the mixer's fixed deposit pools. After the transfers, the 71 addresses tracked under the attacker entity still held 81,454 ETH, worth roughly $198.58 million, plus about $561,600 in USDT, USDC, Solana and USDY.
google_news · The Defiant · · 5 sources
Analysis and references
Impact analysis
The transfers push sanctioned-mixer exposure onto Ethereum, where the stolen ETH now sits, raising compliance and counterparty-screening risk for exchanges, bridges and other service providers that may receive the funds. On the Solana side, the slow pace of recovery is reflected in the DFX recovery token, which has been redeeming at roughly $0.0104 per token against verified losses.
References
Tags
#Tornado Cash#Drift Protocol#ETH#Arkham Intelligence#sanctions#Solana