Tectonic and Notional hackers move millions to Tornado Cash

Tectonic and Notional Finance lost millions in exploits, with attackers moving funds to Tornado Cash, complicating asset tracing and recovery efforts.

Addresses linked to the Tectonic hack transferred 2,658.9 ETH (about $6.65 million) to Tornado Cash on September 3, following a major security breach on the Cronos network. While a chain rollback on Cronos reversed most of the stolen funds, assets already bridged to Ethereum could not be recovered. PeckShield tracked approximately $74 million in stolen funds across three addresses, with $6 million still remaining on Ethereum. Notional Finance also suffered an exploit, losing around $1.7 million in DAI and USDC, which were swapped for roughly 689 ETH and sent to Tornado Cash. The technical cause of the Notional exploit remains unknown, and the identities behind both incidents are still unidentified. The use of Tornado Cash in both cases has made tracing and recovering the stolen assets significantly more difficult.