Blockchain security firm CertiK has flagged a significant transfer of 311 ETH (CRYPTO:ETH), approximately valued at $959,000, from wallets involved in the CoinStats exploit to Tornado Cash (CRYPTO:TORN), a controversial crypto mixing protocol.

The transfer follows a security breach reported by CoinStats in June, affecting a small percentage of its users.

Despite ongoing investigations into the incident, CoinStats has not disclosed involvement of law enforcement agencies.

Tornado Cash, known for its role in laundering stolen funds, continues to operate amid legal challenges and past crackdowns, including the arrest and sentencing of developers involved in facilitating money laundering activities through the platform.