TAO Holder Lost $11.2 Million In TAO Heist: The Case of the Bridged Funds
On June 1st, 2024, A TAO holder lost a staggering $11.2 million, equivalent to 28,200 TAO, in a targeted attack. The theft, executed through a sophisticated scheme involving cross-chain bridging, highlights the vulnerabilities inherent in decentralized finance (DeFi) and the ever-present threat of malicious actors.
Hackers Convert TAO
Shortly after the heist, the threat actor promptly bridged from the TAO network to Ethereum, a popular destination for crypto criminals due to its robust infrastructure and liquidity. This allowed the attacker to leverage the Ethereum ecosystem for their nefarious purposes.
According to Investigations by ZachXBT, the perpetrator’s subsequent actions revealed a meticulous and calculated strategy. Additionally, the attacker immediately began liquidating the stolen TAO for Ethereum (ETH) and USD Coin (USDC), a stablecoin pegged to the US dollar. The conversion, designed to conceal the original stolen asset and reduce the risk of detection, allowed the attacker to seamlessly evade authorities.
At present, the attacker still retains approximately 12,400 TAO, valued at $5 million, demonstrating their calculated approach to maximizing profits. The stolen ETH and USDC were observed flowing into prominent crypto exchanges – Whitebit, HTX, and Binance – further highlighting the attacker’s ability to operate within the shadows of the decentralized finance ecosystem.
ZachXBT Leaks Seven Wallets Connected Lazarus Holding 891 BTC
ZachXBT recently identified seven wallet addresses holding approximately $61.8 million (891 BTC) connected to Lazarus Group hacks.
The latest wallet came after months of grueling investigation by the cybersecurity proponent. Nonetheless, the latest announcement came after he disclosed 3 wallets in connection with the hacking group.
The Lazarus Group, a notorious threat group linked to the North Korean government, has executed numerous cyberattacks, resulting in substantial cryptocurrency thefts.
In recent years, they have shifted their focus to targets within the cryptocurrency industry. The Lazarus Group initially gained prominence through high-profile cyberattacks such as the Sony Pictures hack in 2014 and the $81 million Bangladesh Bank heist in 2016.
According to estimates from analytics firms such as TRM and Chainalysis, the Lazarus Group has stolen between $3 billion to $4.1 billion in cryptocurrencies since 2017.
Notable freezing actions include $374,000 in USDT in November 2023, undisclosed amounts at centralized exchanges in Q4 2023, and $3.4 million by three stablecoin issuers.