- Transactions involving Tornado Cash, MTG, and a significant sum of funds have been uncovered, revealing a complex fund flow and hidden connections.
- The individual withdrew over 11,200 ETH from Tornado Cash, using a portion of the funds to acquire MTG trading cards while employing tactics to add anonymity to the transactions.
- The investigation identified the MTG broker and uncovered lavish purchases of MTG items by the buyer, who consistently overpaid for them, while the funds were also traced to popular cryptocurrency platforms.
As discovered by well known Analyst ZachXBT, we will explore the tale that intertwines the realms of cryptocurrency, trading cards, and potential illicit activities, a series of transactions involving Tornado Cash, Magic The Gathering (MTG), and a significant sum of funds has come to light. This article delves into the details of this intriguing saga, exploring the fund flow, uncovering hidden connections, and contemplating the potential origin of these funds. Join us as we embark on a journey through the intersecting worlds of Tornado Cash, MTG, and a potential source of wealth.
The Fund Flow
Amidst our meticulous monitoring throughout the year, we have observed a particular individual who withdrew over 11,200 ETH (equivalent to $25M) from Tornado Cash. Notably, a substantial portion of these funds was directed towards the acquisition of MTG trading cards. Let us delve into the analysis of where these funds were allocated and attempt to ascertain their potential source.
Tracing the Steps
The individual in question made a total of 110 withdrawals, each consisting of 100 ETH. These funds were sent to 11 distinct addresses, employing a strategic sequence of actions aimed at obfuscating the transaction trail. After withdrawing the ETH from Tornado Cash, the funds underwent a series of transformations. Firstly, the ETH was wrapped, converting it into WETH (Wrapped ETH). Subsequently, the WETH was transferred to a new address before being unwrapped back to its original form. Finally, the individual transferred USDC (a stablecoin) to an MTG broker, completing the cycle. This convoluted process appears to have been adopted to deceive Know Your Transaction (KYT) systems employed by exchanges, adding a layer of anonymity to the transactions.
Unveiling the MTG Broker
Through meticulous investigation, we have managed to uncover the identity of the MTG broker involved in these transactions. The broker’s Instagram username matched that found on OpenSea, a popular online marketplace for NFTs and collectibles. Our team directly engaged with MTG sellers who interacted with the broker on-chain, leading us to identify the broker’s address as 0x80462101b56cb4125c645ff299d3e20c1d908c02.
Intriguing MTG Transactions
Once we connected with the MTG sellers, the plot thickened. The buyer, utilizing the withdrawn funds, embarked on a lavish spending spree, acquiring a wide array of MTG items including starter decks, alpha sets, and sealed boxes. Remarkably, the buyer consistently exhibited a willingness to overpay by 5-10% for these items. The transactions were facilitated by the buyer sending cryptocurrency upfront, while the broker arranged in-person meetings with the sellers, acting as an intermediary. The identity of the buyer remained concealed from the sellers, while the broker appeared to possess limited knowledge of cryptocurrencies, potentially unaware of the intricate Tornado Cash connection.
The Path to Prominent Platforms
Our investigation extended beyond the MTG transactions, as we discovered that the funds also found their way to various deposit addresses at popular cryptocurrency platforms such as Kraken, Bitpay, and Coinbase. The addresses involved in these transactions include 0x34e158883efc81c5d92fde785fba48db738711ee, 0x3a43ac6baf1fa6bdbc966dbdfe26cf545131898e, 0x85cb90db50608a950858e023509d6a7fa289e212, and 0xbfe6def287c402114d39d0156e17fda79efff4d2.
Unlocking the Source
To shed light on the potential source of these intriguing funds, we turned our attention to the top depositors in Tornado Cash throughout the year. Using a Dune query created by bax1337, we identified three significant depositors: Anubis (12400 ETH), Cashio (11500 ETH), and Uranium (11303 ETH). Employing timing and multi-denomination reveal heuristics, we developed a compelling theory suggesting that the funds might have originated from the notorious $50M Uranium Finance hack in April 2021.
Connecting the Dots
Several key factors contribute to the credibility of the theory linking these funds to the Uranium hacker. Notably, on October 4, 2022, the Uranium hacker deposited 5.01 ETH into Aztec, a privacy tool. Merely two hours later, our subject received 2.7 ETH from the same source. Furthermore, in March 2023, the Uranium hacker deposited 52 sets of 100 ETH into Tornado Cash, mirroring the subsequent massive withdrawals made by our subject.
The Enigmatic Buyer
While it is crucial to approach our analysis with caution, the circumstances surrounding the buyerof the MTG trading cards raise numerous suspicions. The buyer’s extravagant spending, totaling in the eight-figure range, coupled with the willingness to overpay for the cards, piques our curiosity. The utilization of a broker to shield their identity, particularly one seemingly unaware of the Tornado Cash connection, adds another layer of intrigue to the story. Furthermore, the receipt of $13.2M from Tornado Cash while within the United States, along with the utilization of the WETH method to obfuscate the source, further deepens the enigma surrounding this individual.
Conclusion
In this captivating saga of Ethereum funds, MTG trading cards, and potential illicit activities, we have unraveled a series of transactions that paint a vivid picture. The intricate flow of funds from Tornado Cash to an MTG broker, the extravagant spending on rare and valuable cards, and the potential connection to the Uranium Finance hack all contribute to the intrigue of this narrative.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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