Raydium hacker covers tracks with Tornado Cash

Tornado Cash is a Decentralized privacy and data protection platform developed on the Ethereum blockchain. The platform allows users to deposit and anonymously withdraw Ethereum’s ERC-20 tokens and ethereum (ETH) using different wallet addresses. 

Hackers and criminals have used the platform to hide their transaction history through the privacy-enhanced smart contract on Tornado Cash. In simple terms, users can deposit funds using one wallet address and withdraw using a different address.

Raydium lost over $2 million in the LP compromise

On Dec. 16, Raydium announced on Twitter that “owner authority was overtaken by an attacker” who allegedly drained the protocol’s liquidity pools.

The exploiter reportedly used admin wallets to verify the drainage without burning Liquidity Pool tokens. According to Nansen Portfolio, Raydium lost $2.2 million in digital assets, including $1.6 million worth of SOL.

The exploiter exchanged all the stolen funds for ETH and is currently covering his tracks using Tornado.

At the time of this publication, the wallet address currently holds only $54, with $21 in SOL and $11 in MEDIA tokens.

The hack heavily impacted Solana’s price and consequently ranked among the worst-performing cryptocurrencies towards the end of 2022.

The project was also heavily exposed to FTX, reinforcing bearish concerns among crypto traders and long-term investors. Despite the ‘falling knife’ phenomena depicted by SOL price, co-founder of Ethereum, Vitalik Buterin, expressed his bullish views saying Solana would recover.

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