In a startling revelation, ZachXBT, a pseudonymous blockchain investigator, has uncovered a unique method of laundering cryptocurrency exploited by the hacker behind the 2021 Uranium Finance breach. The Uranium Finance DeFi platform suffered a massive exploit in 2021, leading to a loss of $50 million due to a coding error during its migration to a new version. This breach drained substantial assets including Bitcoin, Ethereum, and various tokens.
ZachXBT's investigation reveals that the hacker may have laundered their illicit gains through an unusual medium - "Magic: The Gathering" (MTG) trading cards. This maneuver involved withdrawing 11,200 ETH in 100 ETH increments from Tornado Cash, a cryptocurrency mixing service. The funds were converted to wrapped ETH (WETH), then to USDC, and finally used to purchase these rare trading cards. The complex trail of transactions was likely intended to obscure the funds' origin from the Uranium Finance exploit.
In March 2023, the Uranium hacker deposited and withdrew large sums of Ethereum through Tornado Cash, coinciding with the purchase of the MTG cards. The buyer, remaining anonymous, interacted with a U.S.-based broker to acquire these cards, overpaying by 5-10% for items like starter decks and alpha sets, known for their rarity and value. This unprecedented method of laundering raises concerns about the potential impact on the trading card market, as it might taint the remaining supply of these rare items.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
