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