Hackers steal $7.3 million from Poloniex and Kronos

Hackers involved in breaches at Poloniex and Kronos Research have moved over $7.3 million into Tornado Cash (CRYPTO:TORN), a controversial crypto mixer.

This action highlights ongoing security vulnerabilities and regulatory challenges within the cryptocurrency industry.

Analysis of blockchain data reveals that funds from both breaches were transferred in batches to Tornado Cash, raising concerns about the platform's role in obscuring the origins of crypto assets.

The saga began with a significant security breach at Kronos Research in November 2023, resulting in a loss of $26 million due to unauthorized access to API keys.

The US Department of Justice has filed charges against Tornado Cash developers, alleging money laundering conspiracy and operating an unlicensed money transmitter, challenging claims that the platform does not qualify as a money-transmitting business.