The perpetrator behind the April 2023 hack on Hundred Finance, a DeFi project built on the Gnosis chain, has allegedly laundered a portion of the stolen funds. According to Foresight News and PeckShield, the hacker transferred 2266.3 ETH (approximately $8.6 million at current ETH price) to Tornado Cash. The use of Tornado Cash, a privacy-focused Ethereum mixer, has made it difficult to trace the funds further. This incident has raised concerns about the security of DeFi projects and the potential for cybercriminals to exploit vulnerabilities in the ecosystem. Authorities are now working to identify and apprehend the hacker responsible for this significant breach.
Hundred Finance, a fork of the Compound Protocol, previously fell victim to a cyberattack in April, resulting in losses of around $7 million. The attacker reportedly exploited a vulnerability by donating 200 WBTC (wrapped Bitcoin) to manipulate the exchange rate of hWBTC (Hundred Finance's wrapped Bitcoin). This manipulation allowed them to siphon funds from the project's loan pool with a minimal amount of hWBTC. The incident has instigated the cryptocurrency community to urge projects to conduct thorough security audits. As investigations continue, many are hopeful that the hacker will be caught and brought to justice, sending a strong message to potential cybercriminals that such actions will not go unpunished.
As a whole, the hacker's ability to exploit vulnerabilities in DeFi projects highlights the ongoing challenges faced by the cryptocurrency industry in terms of security and risk management. The incidents serve as a reminder for developers and users to remain vigilant and implement robust security measures to protect against potential cybersecurity threats.
