Hacker Launders $278,000 From $6.7M TrustedVolumes Exploit on May 7; PeckShield Tracks Activity

According to cybersecurity firm PeckShield, the hacker who exploited liquidity provider TrustedVolumes for $6.7 million on May 7 has begun actively laundering stolen funds. The attacker has laundered $278,000 so far, depositing 10.2 ETH ($23,600) to TornadoCash and routing 110 ETH ($250,000) via THORChain to Bitcoin; they also attempted to deposit 0.5 ETH to Railgun but reversed the transaction.

Blockchain security firm QuillAudits attributed the exploit to a design flaw in TrustedVolumes' custom order-settlement system, where three security guarantees—maker authorization, replay protection, and token source verification—failed simultaneously, allowing the attacker to drain millions in a single transaction. TrustedVolumes has expressed willingness to negotiate a resolution with the hacker.