Parity Wallet Hacker Initiates Ethereum Laundering After Seven Years of Dormancy

Parity Wallet Hacker Initiates Ethereum Laundering After Seven Years of Dormancy

After seven years of dormancy, the hacker responsible for stealing 150,000 Ethereum (ETH) from the Parity Multisig Wallet in 2017 has begun laundering a portion of the stolen funds.

Laundering Initiated: The hacker recently transferred $9 million worth of ETH to an exchange platform, eXch, initiating the laundering process with a batch of 3,050 ETH. This activity was detected by Cyvers Alerts, a smart contract monitoring service, which observed the utilization of “multiple consolidated addresses” in the laundering process.

Remaining Control: Despite initiating the laundering process, the hacker still retains control over approximately 83,000 ETH, valued at around $246 million at current market prices. This sizable amount represents the remaining stolen funds from the 2017 attack on the Parity Multisig Wallet version 1.5.

Vulnerabilities Exposed: The 2017 hack, which drained 153,037 ETH from three multisignature contracts associated with the Parity Multisig Wallet, underscored vulnerabilities within the Ethereum ecosystem. Analysts at OpenZeppelin, a blockchain infrastructure platform, noted that certain coding practices, such as the use of the “delegatecall” function, contributed to the exploit.

Importance of Robust Coding: OpenZeppelin emphasized the criticality of implementing robust coding patterns and standards within the Ethereum ecosystem to mitigate such vulnerabilities. They warned that overlooking these measures could result in “disastrous consequences,” even from seemingly minor coding errors.

Conclusion: The initiation of Ethereum laundering by the Parity wallet hacker serves as a reminder of the lasting impact of security breaches within the cryptocurrency space. As the hacker continues to exert control over a substantial amount of stolen ETH, efforts to enhance security protocols and prevent future exploits remain paramount for the Ethereum community.

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