The hacker who exploited the Deribit exchange hot wallet began moving the stolen funds using the authorized cryptocurrency mixer Tornado Cash.

According to data from Etherscan, the attacker has sent a total of 1,610 ETH since the exploit amounting to a sum of $2.54 million for the current price of Ethereum set at $1,577.84, according to data from CoinMarketCap.

Blockchain security team PeckShield was the first to spot the transfers taking place as of Saturday with a total of $350,000 moved at the time. According to data from Etherscan, the balance in the hacker’s address is pegged at 7,501.37 ETH, with many more funds to launder.

Attempts to trace the funds have now been complicated by the involvement of Tornado Cash. The cryptographic mixing protocol receives funds, divides them into various units, and sends them cryptographically to unrelated addresses in a way that the source of the funds can be obfuscated.

The role that Tornado Cash plays in laundering stolen funds like this explains why the US Treasury Department’s Office of Foreign Assets Control (OFAC) has banned the protocol. The regulator alleged that around $7 billion has been processed through the protocol so far with a significant sum linked to North Korea’s Lazarus Group cybercrime syndicate.

Despite protests from the crypto industry, the ban on Tornado Cash has been upheld, however it has not stopped the Deribit exploiter from taking advantage of the shield it provides.

Since Blockchain.News reported the exchange’s $28 million exploit earlier this month, the protocol has taken several initiatives beyond disrupting transactions. The exchange said it has routed its transactions to Foreblocks for its strong security services, advising its users to open new Bitcoin (BTC) and altcoin addresses supported on Fireblocks for continuous access to their products and services.

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