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DeFi News

Hacker Moves $27M in Stolen Crypto Through Aave and Tornado Cash

The hacker reportedly gained full control of the crypto wallet and is actively using stolen funds on Aave.

Written By:
Iyiola Adrian

Reviewed By:
Jahnu Jagtap

Last updated: April 22, 2026 3:54 PM
Published January 6, 2026 11:03 PM
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Last updated: April 22, 2026 3:54 PM
Published January 6, 2026 11:03 PM
Hacker Moves $27M in Stolen Crypto Through Aave and Tornado Cash

Key Highlights

  • About $27.3 million in crypto was stolen from a compromised multi-signature wallet, and the hacker appears to have full control of it.
  • Most of the stolen Ethereum has been sent through Tornado Cash, with around 6,300 ETH already deposited to hide the transaction trail.
  • The hacker is actively using DeFi, holding a leveraged position on Aave worth about $9.75 million, which could be liquidated if prices move sharply.

A hacker who broke into a multi-signature crypto wallet earlier this week is now actively laundering the stolen funds, according to blockchain security firm PeckShield. The attack involved about $27.3 million in digital assets and was detected through on-chain activity.

In an X post on Tuesday, PeckShield said the attacker did not just enter the wallet for a short time. Instead, the hacker appeared to have full control of the wallet and laundered the funds over several steps.

#PeckShieldAlert The multisig drainer who stole $27.3M from a compromised wallet has withdrawn 1K $ETH ($3.24M) from #Aave and laundered it via #TornadoCash.

They have deposited a total of 6,300 $ETH ($19.4M) to #TornadoCash so far

The drainer, who controls the compromised… pic.twitter.com/zYjuY9jGw7

— PeckShieldAlert (@PeckShieldAlert) January 6, 2026

According to on-chain data as shown by PeckShield, most of the stolen Ethereum has already been sent through Tornado Cash, a privacy-focused protocol that makes transactions harder to trace. PeckShield reported that around 6,300 ETH, worth about $19.4 million, has been deposited into the mixer so far. The hacker reportedly sent ETH in “multiple batches” to the privacy service.

Hacker actively uses DeFi platforms

The attacker has also interacted with decentralized finance platforms. PeckShield confirmed that 1,000 ETH, worth about $3.24 million, was withdrawn from Aave and later sent through Tornado Cash. In addition, the hacker currently holds an active leveraged position on Aave V3. Data shows that around $20.5 million in wrapped Ether has been placed as collateral against more than $10.7 million in borrowed DAI.

According to PeckShieldAlert, the open position has a total value of about $9.75 million and a health factor of 1.58. This means the position remains active but could face liquidation if market prices shift sharply. While the funds are being used for trading, the original loss to the wallet’s owners remains unchanged.

Also Read: Unleash Protocol Exploit: $3.9M Stolen via Multisig Governance Breach

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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TAGGED:AaveCrypto Hack
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Iyiola - Crypto Journalist at The Crypto Times
By Iyiola Adrian
Follow:
Iyiola is an experienced crypto writer specializing in simplifying complex blockchain and cryptocurrency topics for a broad audience. With expertise in ICOs, DeFi, NFTs, and regulatory updates, he offers valuable insights to help readers make informed decisions.
Jahnu Jagtap - Crypto Research Analyst at The Crypto Times
By Jahnu Jagtap
Follow:

Jahnu Jagtap is a Research Analyst with over 5 years of experience in crypto, finance, fintech, blockchain, Web3, and AI. He holds a BSc in Mathematics and is certified in Blockchain and Its Applications (SWAYAM MHRD), Cryptocurrency (Upskillist), and NISM Certifications. Jahnu specializes in technical, on-chain, and fundamental analysis, while also closely tracking global macro trends, regulations, lawsuits, and U.S. equities. With a strong analytical background and editorial insight, he drives content that delivers clarity and depth in the fast-evolving world of digital finance.

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