Ethereum Retail Investors on High Alert as Hacker Reemerges After Two Years to Cash Out

▲ Cryptocurrency hacking

A hacker who attacked the Mixin Network in 2023 and stole virtual assets worth hundreds of billions of won has broken a two-year silence, moving the stolen funds and heightening market tension.

According to crypto-focused media outlet U.Today on February 14 (local time), a wallet address believed to be linked to the Mixin Network hacker recently began laundering the stolen funds through the virtual asset mixing service Tornado Cash. On-chain analytics firms Santiment and Lookonchain detected that the hacker transferred approximately 2,005 ETH, valued at about $3.85 million, to Tornado Cash over the past 15 hours.

This movement marks the first large-scale activity observed in roughly two years since the $200 million Mixin Network hack in 2023. In addition to the Ethereum sent to Tornado Cash, the hacker distributed 2,087 ETH across three new wallets. With Ethereum currently trading near $1,971, the hacker appears to have entered a liquidation phase, selling funds funneled through Tornado Cash at around the $1,933 level.

At the time of the Mixin Network hack, the attacker stole 57,849 ETH worth $113.4 million, along with 891 Bitcoin (BTC) valued at $59.7 million and $23.57 million in USDT. Experts note that hackers typically freeze stolen funds for years to evade law enforcement tracking, later laundering them through mixing services once public attention subsides. The recent transactions are interpreted as a typical laundering process designed to circumvent investigative scrutiny.

The Ethereum market is currently facing increased selling pressure amid reports of large-scale sell-offs by BlackRock. Concerns are growing that if the roughly 59,854 ETH held by the hacker floods the market, it could further dampen already weakened investor sentiment. While firms such as BitMine are attempting to cushion the downside through accumulation and staking, a massive outflow of hacked funds is expected to pose a significant obstacle to Ethereum’s short-term price recovery.

Investigative authorities and security firms are monitoring fund flows linked to the hacker’s wallet addresses in real time, tracking any additional liquidation attempts. The crypto industry believes the incident will serve as another opportunity for exchanges to reassess their security and anti-money laundering systems, while closely watching to prevent the movement of hacked assets from becoming a catalyst for heightened market volatility.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.