After a sharp decline in the price of Bitcoin (BTC) and the entire cryptocurrency market, opportunistic attackers seized the chance to profit. These attackers utilized stolen funds to buy in during the slump, effectively increasing their assets.
Blockchain analytics firms like lookonchain and Peckshield have highlighted the actions of hackers who breached the Nomad bridge in 2022. The criminals exchanged approximately $40 million in DAI stablecoins for 17,750 Ethereum (ETH), with the average transaction price being around $2,254 per ETH. Cybernews researchers have also been monitoring the situation, noting that the attackers’ investments grew by approximately 10%, or about $4 million, when the Ethereum rate was around $2,500.
However, at least 2,400 Ethereum (worth approximately $6 million) was subsequently sent to the Tornado Cryptocurrency Mixer in an attempt to hide the transaction history. It remains unclear whether these funds were cashed out or if the hackers are holding onto them in anticipation of further price increases.
Analysts have differing opinions on the market’s recovery following this significant downturn. While some foresee the possibility of another decline, others point to past recoveries that followed similar collapses swiftly.
The situation was further exacerbated by the unexpected decision of the Central Bank of Japan to raise interest rates last week. This move triggered a mass elimination of unsuccessful investments in traditional markets, ultimately impacting the cryptocurrency market, which operates 24/7.
In August 2022, the hackers responsible for the Nomad bridge breach siphoned off approximately $190 million in cryptocurrencies, disrupting communications between various blockchains. By November 2022, Nomad had managed to recover about $39 million. The company then offered the hackers up to 10% of the stolen funds and the designation of “white” hackers if they returned the assets.