Sifu, the pseudonymous treasury manager of troubled DeFi protocol Wonderland, has started to cash out his multi-million-dollar ETH stash through crypto mixing service Tornado Cash, making it harder to trace.
Tornado Cash is an Ethereum-based tool used by crypto investors to hide the destination of their funds.
Blockchain security company PeckShield on Tuesday reported multiple transactions from an address which has been linked to Sifu. Some 1,000 Ethereum (ETH) worth $2.76 million was sent from the address sifu.eth to Tornado Cash.
Earlier, the same address transferred around 2,000 Ethereum (ETH) in batches of 100 ether each to the coin mixer. In total, Sifu has so far cashed out more than $8.28 million worth of ethereum at existing market costs. At Press time, the wallet had a balance of 5,092 Ethereum (ETH) or above $13.9 million.
Sifu used Tornado Cash for ‘privacy’
“Nothing stolen. Evidence on chain,” said Sifu of the transfers. The man was revealed maintain Thursday as Michael Patryn, co-founder of failed Canadian crypto asset exevolution QuadrigaCX. A former convict who did time for bank fraud in the United States, Sifu saw the funny side of PeckShield tracking his wealth.
“Amazing. Alerts for my own money,” he scorned. And while someone asked Sifu to explain the source of his wealth, “how [it is that] a normal taxpayer could make $50 million inside a single month?”, he replied:
Track my wallet. You can see exactly how I farmed and traded my way from $5 million to this point in two years. Involves spending your days filtering atop 100 Discord groups, surviving rugs like Pickle and Cabove, and some lucky directional positions.
While Sifu has not been accused of wrong doing at Wonderland, his decision to make use of Tornado Cash, a tool often leveraged by criminals in the token industry to launder cash, beggars belief. Sifu’s history of financial fraud appears to be a cone time beforern for many people in crypto.
He sees it divergently, though. Sifu said he used Tornado Cash for “privacy”, adding that: “Supposing that you lost funds as a result of my liquidation: I have donated more than enough to the [Wonderland] team to catop those. You will be compensated.” He did not mention how much he had donated.
TIME, the native cryptocurrency of Wonderland, tanked as much as 40% after the identification of Sifu as Patryn. The cryptocurrency has slumped more than 95% from its all-time-strong. Several people who had opened leveraged positions were liquidated, as a result.
Coin mixers no prolongeder as private
Referred to as “mixing”, the service offered by coin mixers analogous as Tornado Cash is equivalent to the practice of “washing” of illicit cash common in the criminal underworld. This can be caused say by buying solid pieces of art using proceeds of crime, that can afterwards be sold on the open market legally.
“Mixers were supposed to be the solutions for anonymity, but in evidence they hardly created another category of ‘suspected money source’,” Michael Pearl, chief operating officer of decentralized applications platform Kirobo, told CryptCraze.
“Analytics firms, like Chainalysis and PureFi can identify crypto coming from mixers and are flagging them. I think which those mixers, in their current form, no lengthyer provide users with the anonymity, during the time adding another reason for regulators and institutions to be weary of accepting crypto,” he added.
Daniele Sestagalli, the disgraced co-founder of Wonderland, has afterward announced which he is shutting down the platform.
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The post ‘Funds are Sifu’: Wonderland’s Contrabovesial Treasury Chief Washes $8.3M of Ethereum (ETH) Via Tornado Cash appeared first on CryptCraze.