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500,000 DAI From DAO Maker Exploit Was Sent Through Tornado Cash, Security Analysts Report

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500,000 DAI From DAO Maker Exploit Was Sent Through Tornado Cash, Security Analysts Report

On September 8, the crypto security and smart contract auditing firm Certik revealed that 500,000 DAI was sent through the Tornado Cash mixing platform after the funds were stolen in August 2021. The digital assets originally stemmed from the DAO Maker breach that saw the loss of more than $7 million in ERC20 tokens and stablecoins.

Address Directly Connected to DAO Maker Hack Sends 500,000 DAI Through Tornado Cash

Despite the U.S. government banning the Ethereum-based mixing application Tornado Cash, the application is still used regularly. On Thursday, the crypto security company Certik tweeted at 7:30 p.m. (ET) about the movement of DAI. “We are seeing a movement of 500,000 DAI to Tornado Cash from EOA 0x0B789,” Certik said. “The address is directly connected to the DAO Maker exploiter who stole funds from [the DAO Maker]. Stay safe out there.”

Image shared by Certik on September 8, 2022.

DAO Maker is a crowdfunding decentralized finance (defi) application and is not the same project as Makerdao, the issuer of the stablecoin DAI. The crypto-fueled fundraising protocol DAO Maker was hacked in August 2021, according to an ask-me-anything (AMA) event featuring DAO Maker’s CEO Christoph Zaknun. The hackers were able to siphon $7 million in ERC20 tokens and stablecoins from 5,251 user accounts. At the time, the blockchain firm Cipherblade detailed it was conducting an investigation into the DAO Maker exploit.

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In addition to Certik, the crypto security firm Peckshield confirmed that 500,000 DAI stemming from the August 2021 DAO Maker exploit was sent through Tornado Cash. “Peckshield has detected the address labeled as DAO Maker exploiter has transferred 500K DAI to Tornado Cash,” the Peckshield alert system on Twitter noted. It’s been 32 days since the U.S. Treasury Department’s watchdog the Office of Foreign Asset Control (OFAC) banned Tornado Cash.

OFAC’s move to ban Tornado Cash was met with criticism toward the Treasury Department’s decision. The non-profit that focuses on policy issues, Coin Center, said on August 15 that OFAC’s Tornado Cash ban “exceeds statutory authority,” and said the organization planned to “engage” with the Treasury watchdog. Furthermore, Coinbase announced on September 8, that the company is “funding a lawsuit brought by six people challenging the U.S. Treasury Department’s sanctions of the Tornado Cash smart contracts.”

Tags in this story

7 million, Breach, certik, Christoph Zaknun, Coin Center, Coinbase, crypto assets, Crypto Security, crypto security company Certik, DAI, DAI Tornado Cash, DAO Maker, ERC20s, Exploit, Funds, Hack, OFAC, Office of Foreign Asset Control (OFAC), Peckshield, Stablecoins, Tornado cash, Tornado Cash mixing, Treasury watchdog

What do you think about the 500,000 DAI shuffled through the Tornado Cash platform stemming from the DAO Maker project? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Ecuadorian Police Seize Assets Of Fortunario Due To Alleged Illegal Money Collection Operations

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Ecuadorian Police Seize Assets Of Fortunario Due To Alleged Illegal Money Collection Operations

The Ecuadorian Police and the prosecution of Ecuador have raided several locations linked to Fortunario Digital Assets, a company that was allegedly making illegal collections of money related to forex and cryptocurrency business. The operation also encompassed the seizure of more than $7 million from the accounts of the Ecuadorian company.

Ecuadorian Police Raid Fortunario Digital Assets

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The Ecuadorian police and the prosecution were the main actors in an operation against a company that was allegedly making illegal collections of money. On April 2, these two organizations carried out a joint operation leading to the raid of five locations linked to the aforementioned company in Quito, the capital of the country.

According to a preliminary investigation, the company scammed investors through a network of companies that offered investment services on financial platforms. The company supposedly offered operations in forex and cryptocurrency markets and offered a minimum monthly return of 17% for the lowest tier plan, for customers investing from $500 to $15,000.

However, there were also two other tiers, which offered rewards of $19% and 21% with investments from $20,000 to $90,000, and from $100,000, respectively. The webpage of the company, which is still up at the time of writing, describes the organization as a “group of experts in the area of investments in digital assets and in the financial markets with technical analysis and macroeconomic studies related to cryptocurrencies and arbitration in cryptocurrencies.”

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The company also presented a roadmap that included the creation of its own metaverse and the release of its own token, that would be issued on top of the Binance Chain.

Actions Taken and Similar Companies

According to local media, the prosecution managed to get a preliminary action that blocked the funds of the accounts in the name of Fortunario Digital Assets, which had $7 million in funds.

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There have been other platforms that have been scrutinized by the Bank Superintendence, like IX Inversors, an investment platform that offered users interest of around 1.15% daily. The company was liquidated as a result of a similar procedure. At that time, the institution made a call for citizens “to act with caution and stay informed through official channels, avoiding being a victim of scammers and criminals.”

Regulation for cryptocurrency in Ecuador might come later this year, according to statements made by Guillermo Avellan, manager of the Central Bank of Ecuador, bringing more clarity to the crypto scene in the country.

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What do you think about the actions taken against Fortunario Digital Assets? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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