PeckShield, a blockchain analytics platform, spotted the exploiters of LendHub Protocol moving 2415 ETH, worth $3.86 million, into Tornado Cash during the early morning hours of today.
The criminals sent the money in the hundreds of ETH, and PeckShield could identify them through their wallet address, which was the same address used to steal $6 million from LendHub Protocol in January. Beosin Alert, a blockchain security firm, also flagged the transfer of the funds into Tornado Cash.
LendHub Protocol is a multichain decentralized lending platform built on the HECO (Huobi ECO Chain). It supports the lending and mining of LendHub native tokens (LHB) in 20 HECO currencies. The company intends to be the equivalent of Compound- a lending and borrowing platform on Ethereum.
On January 12, 2023, a hacker exploited a vulnerability on the LendHub protocol to drain the platform of $6 million worth of tokens. The protocol had contacted SlowMist, a blockchain security team, to investigate the incident.
According to SlowMist findings, the hacker withdrew 100 ETH from Tornado Cash and bridged it to the LendHub platform. It used the vulnerability of the IBSV cTokens on the platform to start the attack. The firm had changed the IBSV of the protocol but failed to remove it from the market. This led to the manipulation of prices and the theft of funds from the protocol. The attacker bridged stolen funds worth 1100 ETH into different protocols such as Ethereum and Optimism using gateways including Multichain.
Tornado Cash is a coin mixer that enables users to perform transactions anonymously on the Ethereum blockchain. Users can deposit and withdraw ERC-20 tokens with different wallet addresses. The coin mixer was sanctioned by the US Department of Treasury’s Office of Foreign Assets Control (OFAC) on the 8th of August 2022 for allowing hackers to launder $7 billion through its service.
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