Despite the ongoing efforts of security teams from various cryptocurrency exchanges to combat hacking attempts and protect user funds, a significant amount of money continues to flow to the sanctioned cryptocurrency mixer, Tornado Cash.
This mixer, known for its privacy-enhancing features, has become increasingly popular among those looking to conceal the origin of their funds and avoid detection by law enforcement agencies.
Recent developments indicate that a blockchain security firm, CertiK, issued an alert highlighting the activities of a malicious actor who had exploited the Raydium protocol.
According to the report, the exploiter had successfully sent 1,774.5 Ether (ETH) to a mixer, a service used to obscure the origin of funds. The value of the transferred funds at the time of writing is around $2.7 million, which is a significant amount.
The attack was launched on Raydium, the Solana-based decentralized finance (DeFi) protocol, on December 6th. The attack resulted in the loss of significant funds, which were drained from the liquidity provider account controlled by the exchange owner.
The hackers were able to take control of the account and gain access to a wide range of digital assets, including USD Coin (USDC), Wrapped Solana (wSOL), and Raydium.
Following a thorough investigation, the DeFi protocol has said that the exploit that led to the loss of funds was due to a vulnerability in the decentralized exchange’s smart contracts.
This vulnerability allowed malicious actors to take advantage of the smart contract’s design and execute an attack that resulted in the loss of funds from liquidity pools.
The vulnerability in question pertained to the withdrawal of liquidity pools as fees by the administrators of the decentralized exchange. The vulnerability allowed the attackers to manipulate the smart contract’s code and withdraw funds without authorization.
However, the team behind Raydium promised to design a plan to compensate those affected by the hack. The plan was to utilize the treasury of the decentralized autonomous organization to purchase the missing tokens, which would then be used to reimburse those impacted by the exploit.
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