Cysic exploit funds move to Tornado Cash after foundation offers recovery bounty
Funds tied to the Cysic bridge exploit are moving through a crypto mixer after the project tries to recover part of the stolen proceeds. The transfers come days after the foundation offers a 10% bounty for the return of most of the Ether linked to the attack.
Highlights
- A wallet linked to the Cysic bridge exploit moved about $744,000 in cryptocurrencies, including 300 Ether and 30.4 BNB, to Tornado Cash after a 10% recovery bounty was offered.
- The attacker exploited a bridge vulnerability to mint 10 million Cysic tokens, but Cysic suspended the bridge, blacklisted the recipient address, and froze 2.8 million newly minted tokens, with user wallets unaffected.
- Cysic offered to recover 275.872 Ether (about $665,000), but as of press time, the exploiter’s Ethereum wallet holds just $45, highlighting persistent tracing and security challenges for crosschain infrastructure.
Exploit proceeds and recovery offer
As reported by Cointelegraph, a wallet linked to the Cysic bridge exploit sends about $744,000 in cryptocurrencies to Tornado Cash on Friday after the Cysic Foundation offers the attacker a 10% recovery bounty.According to blockchain security company PeckShield, the address transfers 300 Ether and 30.4 BNB to the crypto mixer. The attacker exploits a bridge vulnerability to mint 10 million Cysic tokens on BNB Smart Chain on Saturday.
Cysic suspends the bridge and blacklists the recipient address, freezing about 2.8 million of the newly minted tokens. The foundation says its mainnet and existing assets in user wallets are unaffected.
The following Thursday, the foundation offers the hacker a 10% bounty in exchange for returning 275.872 Ether, worth about $665,000, which represents roughly 90% of the identified Ether proceeds.
Tracing challenges and project response
Tornado Cash pools deposits from multiple addresses, making the funds harder to trace across the blockchain. Data from Arkham shows the attacker’s Ethereum wallet holds just $45 in Ether at press time.Cointelegraph says it contacts the Cysic Foundation for comment on fund recovery efforts but does not receive a response by publication. The case adds to ongoing security concerns around crosschain infrastructure and token bridge vulnerabilities in the crypto sector.
Our earlier article on the surge in cybersecurity and privacy startup funding noted that investor appetite stayed strong even as the number of deals fell, with total capital lifted by fewer but much larger rounds. We also highlighted how AI-driven and identity-security companies attracted outsized backing, alongside increased consolidation through major acquisitions—signaling that security risks remain a top spending priority.
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