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New ETH Movements to TornadoCash After April FEI Protocol Attack

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  • Ethereum-based DeFi exchange, FEI Protocol, lost around $80 million worth of tokens in an attack in April this year.
  • The hacker also seemed to be laundering the stolen funds into TornadoCash.
  • Now, there seems to be a new development with regards to the FEI Protocol attack.

Ethereum-based DeFi exchange, FEI Protocol, lost around $80 million worth of tokens in an attack in April this year. The protocol resorted to offering the hacker a $10 million bounty to return the stolen funds.

In a series of transactions, the attacker seemed to have moved around $80 million of Wrapped Ethereum from the protocol, and into their personal wallet. The hacker also seemed to be laundering the stolen funds into TornadoCash, where they will then become almost untraceable.

The target of the attack seemed to be multiple liquidity pools belonging to Rari Capital and FEI.

FEI is an Ethereum-based protocol that uses tokenomics to maintain the 1:1 dollar peg for its stablecoin Fei USD. Unfortunately, the hack destabilized the stablecoin. At this point, the coin was trading at around $0.986, according to data from CoinMarketCap.

FEI’s governance token, $TRIBE, also suffered as it plummeted 10% mere minutes after the attack.

Now, there seems to be a new development with regards to the FEI Protocol attack. A Twitter user with the name of “CertiK Alert, posted what he calls a community alert on Twitter on May 23 at around 3:27 am.

The Tweet read “Update on FEI Protocol attacker funds; a movement of 21000 ETH ($24M USD) to TornadoCash from the hacker that stole funds from FEI Protocol. Approximately 1,570 ETH remains.

The user then concluded his Tweet by revealing the ETH wallet address of the stolen Ethereum and by urging people in the crypto community to “stay safe”.

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