Inverse Finance is the latest victim of a DeFi exploit resulting in the loss of over $15 million, Peckshield revealed this weekend. The blockchain security firm released a tweet simply stating, “Hi, @InverseFinance, you may want to take a look,” linked to a transaction on Etherscan.
Washing crypto through Tornado Cash
Over the past few hours, the exploiter sent hundreds of Ethereum transactions to Tornado Cash. Tornado Cash is a standard tool among hackers and exploiters to attempt to obfuscate their transaction history. They describe their service as a tool that “improves transaction privacy by breaking the on-chain link between source and destination addresses. It uses a smart contract that accepts ETH deposits that a different address can withdraw.”
Users generate a random key and deposit ETH along with the note. The user then provides proof of the key to the note from another wallet to withdraw the ETH, thus breaking the transaction chain that “only the user possessing th
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