Drift Protocol Hacker Moves 25,710 ETH Through Tornado Cash
The Drift Protocol hacker transferred 25,710 ETH, worth about $61.5 million, through Tornado Cash on 20 October. The funds were sent in batches over roughly two hours from an address identified by Drift, leaving that address with about 4 ETH. This is the attacker’s second major Tornado Cash transfer wave since July; in July, about 24,400 ETH was reportedly moved through the mixer.
Drift said the April attack used durable nonces to obtain multisig approvals and take administrative control, rather than exploiting a smart-contract vulnerability. Drift reported losses of about $296 million, while Mandiant attributed the attack to North Korean group UNC6862. Earlier estimates put the stolen assets at about $285 million and said they were converted into 131,564 ETH at an average price of $2,154, though blockchain analyses differ on the attacker’s total ETH holdings.
The attacker is still reported to control about 81,454 ETH across 71 addresses, worth roughly $195 million at the cited price. The Tornado Cash transfers indicate continued laundering activity, but do not confirm that the ETH has been sold. The remaining balance could create potential selling pressure if liquidated, keeping traders alert to further on-chain movements.
Neutral
The direct price impact is on ETH. In the short term, the transfer of 25,710 ETH through Tornado Cash may heighten concern that the attacker could eventually sell, while the reported 81,454 ETH balance leaves a sizable potential supply overhang. However, moving funds through a mixer is not evidence of a market sale, and the transfer itself does not add ETH to exchange order books. Without confirmed exchange deposits or selling, the immediate price effect is uncertain, so the assessment is neutral rather than bearish.
Over the longer term, further movements to exchanges or identifiable liquidity venues could increase selling pressure and volatility. Conversely, continued laundering without sales may have limited direct effect on ETH’s market price. Traders may monitor wallet flows, exchange inflows and liquidity conditions for confirmation; broader market trends are also likely to matter more than the transfer alone.