Magic: The Gathering Cards?
The notorious exploiter of the Uranium Finance protocol, which suffered a significant breach in 2021, may have resorted to an unconventional laundering method. Noted blockchain sleuth ZachXBT suggests the hacker used “Magic: The Gathering” (MTG) trading cards to obscure their illicit gains.
The Path from Crypto to Trading Cards
ZachXBT’s investigation reveals a complex trail: withdrawing 11,200 ETH from Tornado Cash in 100 ETH increments, converting to wrapped ETH (WETH), then to USDC, and ultimately using these funds for MTG card purchases. This multi-step process seems designed to complicate the tracking of funds back to their origin in the Uranium Finance exploit.
The Extent of the Transactions
Notably, the funds also found their way to major exchanges like Kraken, Bitpay, and Coinbase. These movements paint a picture of an individual or group attempting to blend illicit funds with legitimate financial systems.
The MTG Card Purchases
ZachXBT’s thread details the purchase of MTG cards through a U.S.-based broker, who facilitated transactions without revealing the buyer’s identity. The buyer’s focus on expensive, rare items like starter decks and alpha sets, often overpaying, raises suspicions about the origins of their wealth.
The Uranium Finance Hack Connection
Tying these card purchases to the Uranium Finance hack, ZachXBT highlights the correlation between the timing of the hacker’s transactions and the card buyer’s withdrawals. Such parallels suggest the two might be one and the same.
Uranium Finance’s Significant Loss
Uranium Finance, a decentralized exchange on the Binance Smart Chain, lost $50 million during a 2021 exploit. This breach involved a wide array of cryptocurrencies, underlining the scale of the heist.
The Role of Tornado Cash and Other Exchanges
After the exploit, the hacker not only utilized Tornado Cash but also converted various cryptocurrencies and transferred funds across different platforms. This diverse approach indicates a sophisticated understanding of the crypto ecosystem.
The involvement of MTG cards in this scheme could impact the perception and value of these collectibles, as suggested by MTG community members.
Tornado Cash Sanctions and Legal Implications
The use of Tornado Cash, now under U.S. sanctions, adds another layer of complexity. The founders of Tornado Cash face charges related to money laundering and operating without a license, highlighting the legal risks associated with such platforms.
Official Analysis by ZachXBT
ZachXBT’s official thread offers a detailed breakdown of the transactions and the potential link to the Uranium Finance hack. His analysis, while not definitive, provides compelling evidence of the connection between the hack and the unusual laundering method involving MTG cards.
