HomeNEWSShadowFi loses $301k to exploitation

ShadowFi loses $301k to exploitation


Follow us


ShadowFi, a popular crypto-private project, has endured exploitation. The protocol confirmed the development in its Friday Twitter post. According to ShadowFi, the exploitation on its LP contract left it at $0.

Similarly, a leading blockchain firm, Peckshield, also confirmed the exploitation of the ShadowFi LP contract. According to Peckshield, the exploitation of the protocol manifested owing to the vulnerability of its SDF token. As reported, this paves the way for anyone to burn the token.

Additionally, the blockchain security firm says the exploiter grabbed 1,078 $BNB, equivalent to $301k. Also, it further that the perpetrator of the exploitation became identified as a NeorderDAO scammer in its internal database. According to Peckshield, the funds stolen by the exploiter have been siphoned to Tornado Cash.

Is The OFAC Right With The Ban? Crypto Bleeding Heavily To The Use Of Tornado Cash

This development further indicates the continuous usage of Tornado cash despite its ban by the Treasury. Recall that the Treasury’s Office of Foreign Assets Control (OFAC) had in early August, banned the mixer after it was harnessed by hackers to siphon stolen funds. OFAC said Tornado Cash had, since its creation in 2019, served as a platform, aiding the laundering of over $7 billion worth of cryptocurrencies. Notably, a popular hacking team in North Korea, Lazarus Group used Tornado cash to siphon over $455 million.

Additionally, Tornado Cash aided the laundering of over $96 million stolen by hackers of Harmony Bridge. Similarly, Nomad hackers also transferred $7.8 million to the virtual currency mixer. This and many others, as reported, led to its ban. According to the Secretary of the Treasury for Terrorism and Financial Intelligence, Brian Nelson, Treasury decided to ban “Tornado Cash, a virtual currency mixer that launders the proceeds of cybercrimes, including those committed against victims in the United States.”

With the ban, exploiter still recently used the crypto mixer to launder funds stolen from Grim Finance. According to Peckshield, the exploiter transferred about 1,900 ETH stolen from the protocol to Tornado Cash in late August. The blockchain analytic firm relayed the transactions details, identifying the exploiter with the 0x9882238 address. Notably, the funds laundered amounted to $3.1 million. Although the attack of Grim Finance manifested late 2021, the exploiter reportedly waited till a few weeks ago to relay the funds to Tornado.

ShadowFi promises to unravel the issue

Now, the latest usage of the crypto mixer by the exploiter of ShadowFi means Tornado still remains active despite the ban. As reported, the exploiter first swapped about 8.4 SDF tokens for 1078 BNB before transferring to Tornado. However, ShadowFi affirms the commitment of its team to resolve the issue in the interest of its users. The protocol wants its users to stay patient as the team unravels the issue.

Read More:

David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

Most Popular