Tornado Cash Money Laundering Activity spotted by ZachXBT
The post Tornado Cash Money Laundering Activity spotted by ZachXBT appeared on BitcoinEthereumNews.com.
Crypto digital detective ZachXBT discovered a suspicious account that has allegedly been laundering funds via digital asset mixer Tornado Cash and spending the bulk of the assets on the acquisition of Magic The Gathering (MTG) trading cards. Tornado Cash is the sanction mixer notorious for facilitating money laundering transactions. Suspected Tornado Cash Laundering Scheme According to the crypto sleuth, he has been tracking this wallet since the beginning of 2023. The owner of the wallet in question has withdrawn “110 X 100 ETH from Tornado to 11 addresses” and exchanges like Kraken, Bitpay, and Coinbase while leveraging an interesting strategy. 2/ This person has withdrawn 110 X 100 ETH from Tornado to 11 addresses. After they would:1) Wrap the ETH2) Transfer WETH to new address3) Unwrap the WETH4) Transfer USDC to MTG broker (this is a strategy used to trick KYT at exchanges) pic.twitter.com/p8zMOWTiVR — ZachXBT (@zachxbt) December 7, 2023 First, the wallet owner wraps the withdrawn Ethereum and thereafter, he transfers the wrapped Ethereum (wETH) to a new address. While in this address, the tokens are unwrapped and swapped to United States dollar-pegged stablecoin USDC. Next, the USDC is transferred to the MTG broker. Oftentimes, this strategy is used to deceive the Know-Your-Transaction requirements of certain crypto exchanges. Once he uncovered the strategy, ZachXBT immediately went in search of the MTG broker that received the stablecoin. He found that he had on Instagram the same username as that on the Non-fungible token (NFT) marketplace OpenSea. Then, he approached a few MTG sellers that the broker had interacted with on-chain to get a deeper insight on who he is. ZachXBT Suspects Uranium Hacker At this point, the Tornado Cash transactions had gotten quite interesting. It happened to be that the buyer was spending millions on starter decks, alpha sets, and…
Filed under: News - @ December 8, 2023 12:20 pm