The hacker behind the $285 million Drift Protocol exploit has started laundering the stolen funds after months of inactivity, moving large batches of Ethereum into Tornado Cash. The breach, which occurred in April 2026 via a nonce attack, was one of the largest DeFi hacks. Now, the laundering signals a shift from immediate recovery to longer-term repercussions for the protocol and the broader decentralized finance ecosystem.
Data from Lookonchain reveals that the exploiter deposited 23,095 ETH (approximately $44.4 million) into the privacy mixer in a single batch, while still retaining 107,165 ETH. Earlier reports indicated smaller 100 ETH deposits, showing a methodical effort to obscure the trail. Drift Protocol, a Solana-based DEX, has seen its trading volume plummet to zero, reflecting shattered market confidence.
The activity has reignited debates around DeFi security, the effectiveness of privacy tools like Tornado Cash, and potential regulatory crackdowns. As the hacker continues to control a massive stash, traders are on high alert for further market turbulence and possible policy responses that could shape the future of decentralized applications and Ethereum's standing.
