In a concerning development, the most recent monitoring data from on-chain analyst Ember has revealed that a hacker involved in the Decentralised Exchange (DEX) Velocore's breach has moved 1,807 ETH (equating to approximately $6.88 million) into Tornado Cash within the last 45 minutes. This brazen move highlights the perpetrator's attempts to conceal their illicit gains and evade detection.

Previously launched on zkSync and Linea, Velocore fell victim to a cyber attack that led to the theft of users' Liquidity Provider (LP) tokens. The hacker managed to convert all appropriated assets into ETH, subsequently transferring these to the Ethereum mainnet using the cross-chain bridge. Following the breach, all stolen ETH has now been transferred to a specific address, marking the successful laundering of roughly $6.88 million worth of ill-gotten ETH.

In response to these events, Velocore has confirmed a security breach within its protocol, resulting in significant liquidity loss. While their CPMM pool was impacted, the stable pool remained unaffected. Vowing to take all necessary measures to resolve the issue, Velocore is currently collaborating with security teams and foundations while urging Centralised Exchanges (CEX) to freeze the pilfered assets. Meanwhile, post-mortem inquiries are underway along with preparations for an on-chain negotiation process as the team seeks to track down the exploiter using left-behind clues.

The hacker's use of Tornado Cash, a privacy-focused Ethereum mixing service, highlights the challenges faced by the cryptocurrency community in combating money laundering and illicit activities. While privacy-enhancing technologies can serve legitimate purposes, they can also be exploited by bad actors to conceal their tracks.

As the investigation into the Velocore breach continues, it is crucial for the DEX community to learn from this incident and strengthen their security measures to prevent similar attacks in the future. The collaboration between Velocore and security teams, as well as the efforts to track down the exploiter, demonstrate the resilience and determination of the DEX community in the face of adversity.

In conclusion, the Velocore breach and the subsequent laundering of $6.88 million in ETH through Tornado Cash serve as a stark reminder of the ongoing challenges faced by the cryptocurrency ecosystem in ensuring the safety and security of user funds. As the industry continues to evolve, it is essential for DEXes and other crypto platforms to prioritize robust security measures and work together to combat illicit activities and protect the integrity of the decentralized finance space.