$73M Stolen Money Laundered by Ronin Bridge Hackers Using ChipMixer
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The blockchain security company SlowMist conducted an on-chain investigation of the Ronin breach and reported that the mixing protocol ChipMixer was used as a hacker hotspot on the Bitcoin network.
The investigation claims that on March 29, hackers stole assets worth $610 million from Axie Infinity's Ronin bridge. The majority of the money was laundered on the Ethereum and Bitcoin networks. The money used to launder money on the Ethereum blockchain was transferred to Tornado Cash at a rate of 74.7% (300,160 ETH), while the hacker's account still has 95,570 ETH.
To the Bitcoin network, several 6,531.04 BTC were sent. 36.6% of the cash was still kept in the account of the hacker, while 3,460 BTC (49.1% of the total) were laundered, thanks to ChipMixer. The hackers took 2,671 BTC out of the ChipMixer protocol and moved the money through Blender, Wasabi Coinjoin, and the Binance exchange.
Lazarus Group Favors Bitcoin-based Laundering
A further finding of the inquiry was that renowned hackers like the Lazarus Group favor using the Bitcoin network to swindle money. They can carry out their illegal acts more easily and secretly with Bitcoin and Ethereum. The Lazarus Group has used Bitcoin more than any other network to launder money.
ChipMixer Could Be Next On The Hit List
Regulators could keep an eye on ChipMixer. On the Bitcoin network, 48.9% of the money was laundered with the help of ChipMixer, while 74.6% of the money was laundered on the Ethereum network with the help of Tornado Cash. According to SlowMist, 26,021 Bitcoins were delivered to ChipMixer in 2022 alone, while 14,370 Bitcoins were removed from the mixing protocol. The Ronin Bridge hack in March marked the height of its financial criminal activity.
The US Treasury imposed sanctions on the mixing protocol earlier in May for its role in the Ronin breach. Recent US Treasury sanctions and the detention of Tornado Cash's developer, Alexey Pertsev, forced Tornado Cash to halt operations.