Bittrue Hacker Profits $9.3M Trading Stolen ETH, Laundered $30M via Tornado Cash

According to @lookonchain, a hacker responsible for the $23 million theft from the Bittrue exchange in 2023 has initiated laundering the funds through the Tornado Cash mixing service. Citing Debank data, EmberCN reported that the hacker recently sent $30 million worth of Ether (ETH) to the service. The individual reportedly made a profit of $9.37 million by strategically trading the stolen assets, selling ETH in 2023, repurchasing it after a price drop, and holding it through its recent price appreciation. Debank data indicates that all the stolen funds are now being funneled through Tornado Cash. Additionally, the hacker's on-chain history on Etherscan reveals that some funds were also deposited to the decentralized derivatives exchange HyperLiquid, indicating complex laundering and trading activities.
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A sophisticated actor behind the 2023 hack of the Bittrue cryptocurrency exchange has resurfaced, initiating a large-scale laundering operation for illicitly gained funds. According to on-chain analyst Lookonchain, the hacker, who initially stole assets valued at $23 million, has now begun funneling approximately $30 million worth of Ether (ETH) through the sanctioned privacy protocol Tornado Cash. This move not only highlights the persistent challenges in tracking stolen crypto assets but also reveals a remarkably successful trading strategy executed by the malicious entity. The incident serves as a stark reminder for traders of the dual nature of the market: immense opportunity coexisting with significant security risks that can impact exchange solvency and market sentiment.
Hacker's Profitable ETH Trade: A Case Study in Volatility
The most compelling aspect of this saga is not just the theft, but the hacker's subsequent market acumen. As detailed by crypto analytics firm EmberCN, the individual demonstrated a keen sense of market timing. After the initial hack in 2023, the perpetrator sold the stolen tokens when Ether's price was elevated, reportedly reaching highs around $2,450. Subsequently, as the market entered a corrective phase, the hacker bought back into ETH. This repurchase occurred after the price had fallen significantly, with market data aggregators showing lows around $1,472 in April 2023. By holding this reacquired ETH position through the subsequent market recovery and recent rally, which saw prices climb as high as $2,873 earlier this week, the hacker crystallized a staggering profit of $9.37 million on top of the initial stolen principal. This calculated maneuver underscores the immense profit potential within ETH's price swings, a factor that attracts both legitimate traders and, as seen here, sophisticated criminals.
On-Chain Forensics: Tracing Funds Through Tornado Cash and DEXs
The laundering phase of this operation is now in full swing. Data from the Debank platform confirms that the entire $30 million holding is being systematically dispersed through Tornado Cash. This service is a go-to tool for illicit actors as it breaks the on-chain link between the source and destination of funds, making tracing exceptionally difficult for law enforcement and analytics firms. Further investigation of the hacker's on-chain trail on Etherscan reveals additional layers of complexity. The transaction history shows that some funds were laundered in April, and between these mixing activities, there were several deposits to HyperLiquid, a decentralized derivatives exchange. This suggests the hacker may be using complex financial instruments like perpetual futures to further obscure the funds' origins or even to hedge and leverage their positions, showcasing a high level of financial sophistication beyond simple mixing.
Current Ethereum (ETH) Market Landscape for Traders
While the hacker capitalized on past volatility, traders today are navigating a different but equally dynamic environment. Currently, the ETH/USDT pair is trading around $2,445, exhibiting consolidation after a recent push. The 24-hour trading range between $2,436 and $2,521 highlights intraday volatility that presents opportunities for short-term traders. Immediate support can be identified near the 24-hour low of $2,436, with a more significant psychological level at $2,400. On the upside, resistance is forming near the recent high of $2,521. A decisive break above this level could signal a continuation of bullish momentum. Meanwhile, the ETH/BTC pair, trading at approximately 0.02295, shows Ether's relative weakness against Bitcoin in the immediate short term, having dipped from a 24-hour high of 0.02376. Traders often watch this ratio for signs of an impending 'altcoin season.' In the broader altcoin market, the SOL/ETH pair is showing strength, up over 2.5% to 0.068, indicating some capital rotation into other large-cap ecosystems. This cross-market analysis is crucial for traders looking to optimize their portfolios based on relative strength.
This incident underscores a critical theme for the digital asset space in 2024. Despite rapid institutional adoption and increasing regulatory clarity, the industry continues to battle sophisticated security threats. The loss of $1.67 billion to hacks and exploits in just the first quarter of this year is a sobering statistic. For traders, the key takeaway is twofold. First, the security of the platforms they use is non-negotiable, as exchange hacks can have cascading effects. Second, the very volatility that creates risk is also what drives opportunity. The Bittrue hacker's profitable trade, while criminal, is a potent example of how understanding and timing market cycles can yield substantial returns. Vigilance, both in security practices and market analysis, remains the cornerstone of successful crypto trading.
Lookonchain
@lookonchainLooking for smartmoney onchain