Hedera network hacked: $5.25 million stolen and funnelled to Ethereum

The Hedera network has been hit by a serious exploit. Attackers have managed to steal $5.25 million in crypto and then move that amount via a bridge from the Hedera Mainnet to Ethereum. The hacker currently holds 2,360 ETH worth around $4.25 million and 15.58 WBTC worth around $1 million in the wallet in question.

Ethereum is available at OKX and Bybit.

Tornado Cash used to conceal traces

What immediately stands out about this attack is the way the hacker finances his activities. To obscure the origin of the funds, the attacker uses Tornado Cash to deposit an initial 1 ETH into the wallet with which the exploit is carried out. This is a well-known tactic in crypto thefts where perpetrators try to erase their tracks via a mixing service.

Security firm Specter first reports the exploit, after which PeckShield spreads the details further. On Etherscan, the wallet in question is visible with a balance of over 2,284 ETH, which at the current Ethereum price of $1.800 amounts to more than $4.1 million. In addition, the wallet still contains token holdings worth $1.42 million.

Funds quickly moved via crosschain bridge

The stolen funds are moved from the Hedera Mainnet to Ethereum very quickly. The transaction history on Etherscan shows that the wallet receives several large transfers from the same source address in a short period. Amounts range from around 55 to 74 ETH per transaction, all executed within a timeframe of about one hour after the first activity.

The total value in the wallet across multiple chains runs to more than $5.5 million. This kind of exploit, in which funds are siphoned off via crosschain bridges, makes it more difficult for authorities and project teams to intervene in time. There has been no official response from the Hedera team so far regarding the extent of the damage or possible countermeasures.