Blockchain security firm Peckshield says roughly $5.25 million was drained from the Hedera network and bridged to Ethereum in a suspected exploit. The attacker's wallet, funded with 1 ETH from Tornado Cash, now holds about 2,360 ETH and 15.58 wrapped bitcoin. Hedera had not confirmed the incident at the time of reporting.
Attackers pulled about $5.25 million out of the Hedera network and moved it to Ethereum, according to blockchain security firm Peckshield. The firm reported that the Hedera network had been exploited, though the full scope of the breach — which applications or user accounts were hit — stayed unclear.
Funds trace back to Tornado Cash
The thief seeded the operation with 1 ETH drawn from Tornado Cash, the crypto mixing service. After moving the stolen funds off Hedera's mainnet, the attacker's wallet held roughly 2,360 ETH worth $4.25 million. It also held 15.58 wrapped bitcoin, valued near $1 million — a tokenized version of bitcoin that trades on Ethereum.
HBAR, Hedera's native token, felt the fallout. It traded near $0.07 on July 11, down nearly 3% over the last 24 hours. Hedera had not publicly confirmed the incident as of the report.
A familiar cross-chain playbook
The attack echoes a recent case in which thieves shifted $11.5 million in stolen Verus assets to ether through an almost identical Tornado Cash setup. Meanwhile, cross-chain bridge exploits topped $328 million in the first five months of the year.
This is not Hedera's first breach. In March 2023, attackers exploited the network's smart contract service and drained liquidity pools from decentralized exchanges. That earlier attack netted under $600,000, and the network shipped a fix within 41 hours of discovery.
Source: Bitcoin News
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