A $100 million thief at the Harmony Horizon cross-chain bridge began laundering cryptocurrency through the Tornado Cash mixer. About it on Twitter reported Harmony representatives.
1/ We are aware the hacker has begun to move funds through Tornado Cash. The team is working with two highly reputable blockchain tracing and analysis partners, and collaborating with the FBI as part of an investigation into this criminal act. 🧵
— Harmony 💙 (@harmonyprotocol) June 28, 2022
It is reported that Harmony has already ordered surveillance of the attacker through two “highly reputable blockchain companies.” The project also cooperates with the FBI on the incident. How much exactly the hacker managed to launder, representatives of Harmony do not report. According to on-chain dataover the past day, the attacker managed to transfer more than 18,000 ETH (more than $20 million) to third-party wallets.
Recall that the Horizon cross-chain bridge was hacked on June 24. As a result of the attack, the attacker was able to steal almost $100 million in cryptocurrencies. How claims Harmony CEO Steven Tse, an unknown person managed to “compromise” the encrypted private keys for a multisig wallet. How exactly the attacker was able to do this is not reported.
It is noteworthy that in April of this year, the founder of Chainstride Capital, known under the nickname “@_apedev”, already pointed out on the Horizon bridge vulnerability. He did some research and found out that security is provided by a multisig wallet, which depends on just four people for security. At the same time, only two signatures are needed to complete an arbitrary transaction.
Team Harmony previously suggested a $1 million reward for the return of the stolen money. The developers also promised not to involve law enforcement agencies if the stolen 100 million are returned. However, those who hacked the cross-chain bridge did not respond to Harmony’s offer.
Harmony is a first-level scalable blockchain powered by Proof-of-Stake consensus algorithm. In May 2019, Harmony held an Initial Coin Offering (ICO) in partnership with Binance.
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I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.