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The recent attacks on the Ronin and Horizon Bridges resulted in a total of $725 million stolen from those bridges. There are many similarities between these hacks, but the interesting one is using a DAP called TornadoCash, a coin mixer service.

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• What role do coin mixers play in hiding their identity from hackers?

Transactions on The Blockchain

Go to your nearby bank branch, and request the branch executive for your friend's recent exchange record. Not only will your application be rejected, but you may even be fired for such an outrageous request.

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In contrast, more cryptos are public in nature. Every transaction on the blockchain is available for anyone in the world to read, but it is difficult to identify the individuals involved in the transaction. However, with coffee chain analysis and data mining, user privacy is at risk of being compromised.

In exploits like Ronin and Horizon, hackers can successfully transfer crypto to their wallets. Funds will be transferred online. When hackers want to convert their large crypto reserves into fiat like USD or EUROs, they will use KYC-enabled centralized crypto exchanges (CEX). This is the point at which their identity will be revealed and their chances of being caught will increase.

• How can one lose track of cash flow when every transaction is public?

Enter Coin Mixer

Coin Mixer

Coin mixers (or tumblers) are services that combine possible streams of identifiable transactions to reduce the search for cash flow.

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Coin mixers are services to preserve the anonymity of user transactions on blockchains. The owner of the crypto transfers the money to the mixing service, which mixes it with the crypto sent by other users and transfers the mixed currency to the desired address, creating a link between the original transaction and the recipient's address. breaks down goes

The transaction amount can be chosen randomly so that the transaction consists of many small partial payments spread over a long period of time. Mixing services usually request a delay of at least 24 hours before withdrawing money from it. Mixing services typically charge a service fee of between 0.25 and 3%.

• Typology Hackers use DEXs and Mixers to obfuscate transactions.

• Earn Ethereum and other tokens by hacking Crypto services like Bridges, Smart Contracts etc.

• Use DEXs to convert stolen tokens into Ethereum, Solana and other major cryptos.

• Submit this crypto to a coin mixer service like TornadoCash and BitMixer.io etc.

• Withdraw crypto in a new wallet without traces of origin of funds.

• There are demixing services developed by blockchain analytics companies that are able to trace the funds transferred through these mixing services.

• Ordinary users are at risk of scrutiny by forensic authorities if the transaction involves stolen currency. Mixing services are widely used by criminals to launder stolen funds. In some jurisdictions, mixing is illegal under anti-structure laws.