The Rabbit Hole #9🕳

If you haven’t been keeping up with the news, they found a MASSIVE bug in OpenSea yesterday. Because of this, over $1 million worth of NFTs were rugged and one attacker in particular (jpegdegenlove) paid a total of $133,000 for 7 NFTs, just to sell them quickly after for a total of $934,000.

A ton of people covered this but not many noted how the attacker got away with it!🌪

5 hours after the attack, the ETH from the hacker’s wallet address was sent through Tornado Cash, a mixing service that allows users to deposit their funds into the protocol and then take it out at another address, with no traceable link between the two using a technology called zero-knowledge proofs (aka ZK-Proofs).

Tornado Cash is solving the huge issue of privacy in the Web 3 world. But it raises a very important issue as we move into a more decentralized world.

When we can’t track where money goes, we enter a whole new digital Wild West that I’m not 100% sure the majority of people are ready for, and I bet governments will have a field day with this development.

What do you think? I would love to hear your comments below!

🔗Keep growing my friends

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Researcher @ The Rabbit Hole | Associate @ the Rines Angel Fund | VP @ UNH E-Club | UNH Honors Student | DeFi + Web 3.0 Enthusiast 🚀💡

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derek_xyz

derek_xyz

Researcher @ The Rabbit Hole | Associate @ the Rines Angel Fund | VP @ UNH E-Club | UNH Honors Student | DeFi + Web 3.0 Enthusiast 🚀💡

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