- The AnubisDAO scandal of 2021 spotlighted the fraudulent diversion of 13,556 Ether (ETH) valued then at a staggering $60 million.
- After lying low for two years, the crypto criminals mobilized the swindled Ethereum using Tornado Cash, expertly eluding tracking by dividing the amount into smaller units.
- The related cryptotech debacle at Geist Finance has led to a possible accumulation of bad debt, marking the termination of their operations.
Back in October 2021, the crypto-world was shaken by a daring cryptocurrency robbery. AnubisDAO, a decentralized finance (DeFi) entity that took pride in its origins from the joke-inspired Dogecoin, fooled investors into bankrolling their project with an astounding 13,556 Ether (ETH). Shockingly, within 20 hours, these funds disappeared into the virtual unknown, leaving the investors befuddled and out of pocket.
Fast forward to mid-summer 2023, the crypto culprits behind the two-year-old scandal have finally emerged. The purloined Ethereum fortune was moved using Tornado Cash, a mechanism that provides a veil of anonymity to transactions. Through smartly partitioning the purloined ETH into 100-batch units, the scammers successfully avoided alerting suspicion.
The blockchain detectives at PeckShield have kept a keen eye on this debacle since the start, when the looted sum stood at a hefty $60 million. Regrettably, the same amount today has plummeted to nearly $26.2 million, adding salt to the investors’ wounds. As they witness their stolen investments fade into the digital shadows, a glimmer of hope persists for a possible reimbursement during a market surge.
This unfortunate incident underscores the need for investors to tread carefully. Comprehensive due diligence about the project and the individuals backing it is essential before diving into any investment.
The fallout from the crypto trickery also impacted Geist Finance, a lending protocol. A technical glitch resulted in non-Multichain coin holders, such as Magic Internet Money (MIM) or Fantom (FTM), facing the risk of accruing bad debt. This issue, together with the losses from the Multichain exploit, prompted Geist to shutter its operations permanently, ending their lending and borrowing services. The company’s recent statement corroborates this decision, extinguishing any lingering hopes of a restart.
Top 3 Crypto Heists Unmask Sector’s Vulnerabilities
2021 to 2023 saw a major trio of shocking events which have led to a rise of fear in the crypto world. The industry was jolted by substantial heists that laid bare its security vulnerabilities.
The Ronin Network, linked to the well-known Axie Infinity game, saw a devastating cyberattack which siphoned off $620 million. This breach served as a chilling reminder of the cyber threats facing digital finance.
Meanwhile, the Poly Network, a renowned DeFi protocol, suffered a similar fate with a heist amounting to $610 million. In an unexpected turn of events, the hacker later returned the entire stolen sum.
Additionally, the top-tier crypto exchange, Binance, grappled with a massive security breach leading to the theft of about $570 million in digital currencies. While much of it was subsequently frozen, the incident echoed the cry for beefed-up security across the cryptocurrency sector.
