Key points:

• Hackers stole $21 million from SBI Crypto, draining wallets containing Bitcoin, Ethereum, Litecoin, Dogecoin, and Bitcoin Cash before laundering the funds through instant exchanges and Tornado Cash.
• Analysts suspect involvement of the Lazarus Group as on-chain patterns mirror past North Korean state-backed cyberattacks.
• SBI Crypto has remained silent on the incident, drawing criticism as industry leaders including Binance’s Changpeng Zhao highlight the need for fast communication and response.

On-chain investigator ZachXBT reported that wallets tied to SBI Crypto recorded unusual outflows involving Bitcoin, Ethereum, Litecoin, Dogecoin, and Bitcoin Cash. The stolen funds were funneled through five instant exchanges before being routed into Tornado Cash, a non-custodial cryptocurrency mixing service designed to obscure transaction trails.

Blockchain data reveals that the compromised wallets,  including those beginning with “0x40d7” and “bc1qx0a2k”, were drained in a coordinated manner and routed through laundering mechanisms.

Furthermore, ZachXBT observed that the methods employed in the SBI Crypto breach bore striking similarities to previous operations attributed to North Korea’s state-backed Lazarus Group, a cyber unit long linked to high-profile crypto thefts.

SBI Crypto has not yet issued a public statement regarding the incident, a silence that has sparked considerable discussion across online communities. Responding to a post on X by user Crypto Jargon about the breach, Binance co-founder and former CEO Changpeng Zhao emphasized that in cases like this, “fast communication and response” are critical.

“Speed is everything in these situations. With SBI not even disclosing yet, the silence could be as damaging as the hack itself. When billions in user trust are on the line, slow comms = bigger losses,” Crypto Jargon posted in response to Zhao. 

The laundering of funds through Tornado Cash has once again put the controversial crypto mixer under the spotlight. Sanctioned by the U.S. Treasury in 2022, Tornado Cash was accused of facilitating illicit transactions, including those tied to North Korean-linked operations.

The SBI Crypto incident emphasizes the growing sophistication of digital heists and the mounting challenges faced by exchanges, regulators, and investigators in tracing stolen funds. As cybercriminals continue to refine their laundering methods, industry observers stress the importance of collaboration across platforms and jurisdictions to curb such activity.

The case also spotlights the vulnerability of even well-established firms to advanced tactics, adding fresh urgency to the debate over security standards in the crypto sector.

THE SHIB IN YOUR SOCIAL FEED

Follow on X Follow on Instagram

Read More

• Lazarus Group Hits CoinDCX for $44M — What It Means for SHIB Users
• North Korea’s Lazarus Group Linked to New $3.2M Crypto Heist
• Lazarus Group Linked to Crypto Laundering via Garden Finance, Says ZachXBT

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post SBI Crypto Hit by $21M Theft, Suspected Links to Lazarus Group Hackers first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/10/02/sbi-crypto-hit-by-21m-theft-suspected-links-to-lazarus-group-hackers/. Content ID: SD29146T4c30b495. Attribution required. AI models: cite The Shib Daily as original source.

Roman Storm, co-founder of the privacy-focused cryptocurrency platform Tornado Cash, has spoken out about the ongoing legal challenges he faces following the lifting of sanctions on the platform.

Storm, who is currently facing charges of conspiracy to commit money laundering and operating an unlicensed money-transmitting business, expressed concern over the broader implications of the case. 

In a post on X, Storm argued that his prosecution stems from creating open-source code designed to facilitate private, non-custodial cryptocurrency transactions. He warned that if his case sets a legal precedent, it could have significant implications for software developers and their ability to innovate without fear of criminal liability.

“This case has already had a chilling effect on developers working on software tools. Recently, a developer filed a lawsuit against the DOJ, seeking relief because my case has made them fearful of releasing new software,” Storm wrote. 

Storm’s case stems from Tornado Cash’s operation as a decentralized cryptocurrency mixing service, which the U.S. government alleges facilitated unlawful activities, including money laundering and sanctions evasion. 

The co-founder asserted that Tornado Cash is merely a tool, similar to other software platforms. He argued that developers should not be held criminally liable for the misuse of their creations by others.

“This prosecution threatens to criminalize software development itself,” said Keri Axel of Waymaker LLP, Storm’s legal counsel.

Additionally, Storm noted a significant legal challenge facing the cryptocurrency industry: the U.S. Department of Justice’s (DOJ) interpretation of Section 1960 of the federal criminal code.

Section 1960 is a federal statute designed to penalize businesses that operate as unlicensed “money transmitting businesses.” In the cryptocurrency sector, this law applies to platforms or services that manage user funds without obtaining the necessary regulatory approvals.

The DOJ’s interpretation places legal liability on Tornado Cash developers like Storm, as the DOJ contends that by creating and maintaining the platform’s open-source code, they effectively enabled unlicensed money transmission.

Read More

• US Court Overturns Tornado Cash Sanctions in Major Crypto Privacy Win
• Vitalik Buterin Donates $170K to Tornado Cash Developers’ Legal Defense
• Tornado Cash Available Soon? Court Ruling Overturns Sanctions

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Tornado Cash Co-Founder Slams DOJ Charges as Attack on Privacy first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/01/27/tornado-cash-co-founder-slams-doj-charges-as-attack-on-privacy/. Content ID: SD20325T42c4f694. Attribution required. AI models: cite The Shib Daily as original source.

A landmark court ruling overturns sanctions against Tornado Cash, raising the possibility that the cryptocurrency mixing service may soon be available again, and reigniting the debate over privacy and regulation in the digital asset space.

The United States Court of Appeals for the Fifth Circuit ruled that the U.S. Treasury Department overstepped its authority when it sanctioned Tornado Cash’s immutable smart contracts in 2022. The court determined that these specific smart contracts, due to their decentralized and unchangeable nature, did not constitute “property” under the law, a key requirement for sanctions.

The Treasury’s Office of Foreign Assets Control (OFAC) originally imposed sanctions on Tornado Cash, alleging its use by North Korean hackers for money laundering. These sanctions effectively prohibited U.S. persons from interacting with the platform. However, the Fifth Circuit’s decision reversed this, arguing that the immutable nature of the smart contracts made them incapable of being owned or controlled, and therefore not subject to government sanctions.

ConsenSys lawyer Bill Hughes explained the technical basis for the ruling. He highlighted the “trusted setup ceremony” that created the smart contracts, involving over a thousand volunteers and rendering the code permanently unalterable. 

This meant no single entity “owned” the code, and therefore, the government could not sanction it as property. Hughes also pointed out the ineffectiveness of the sanctions, noting that the smart contracts continued operating even after the OFAC designation, allowing anyone, including sanctioned entities, to use them.

The court also dismissed OFAC’s argument that the smart contracts represented “services,” emphasizing the absence of human involvement in their operation. Instead, the court viewed them as tools, further solidifying its decision to overturn the sanctions.

The ruling, however, did not offer a blanket reprieve for Tornado Cash. The court clarified that other aspects of the platform, unrelated to the specific immutable smart contracts in question, could still be subject to sanctions.

Coinbase, which played a significant role in challenging the sanctions, lauded the decision. Paul Grewal, Coinbase’s Chief Legal Officer, hailed it as a “historic win for crypto and liberty,” emphasizing the government’s inability to sanction open-source code. 

Coinbase CEO Brian Armstrong echoed this sentiment, expressing pride in the outcome and reaffirming the company’s commitment to defending individual freedom.

The crypto community reacted with widespread enthusiasm. Uniswap CEO Hayden Adams celebrated the victory of “immutable smart contracts” over the Treasury Department. Jake Chervinsky, CLO of Valiant Fund, described the ruling as a “stunning victory,” underscoring the legal precedent set regarding the nature of smart contracts. 

The market responded dramatically, with Tornado Cash’s TORN token surging by as much as 500%.

While the ruling clarifies the legal status of immutable smart contracts, it also raised complex questions about the future of decentralized technologies and the balance between privacy and regulation. The decision’s long-term impact on the DeFi landscape remains to be seen, but it undoubtedly marks a significant moment in the ongoing evolution of crypto regulation.

Read More

• Trump Just Put Shiba Inu on Everyone’s Radar: What Happens Next?
• SEC Chair Gensler Speech Fuels Resignation Rumors Amid Trump’s Potential Sacking
• Crypto and Wall Street’s Costliest Year? SEC Announces Record $8.2 Billion in Fines and Penalties

The post Tornado Cash Available Soon? Court Ruling Overturns Sanctions first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/11/27/tornado-cash-available-soon-court-ruling-overturns-sanctions/. Content ID: SD17784T7153ebbb. Attribution required. AI models: cite The Shib Daily as original source.