The former CEO of TenX Toby Hoenisch was reportedly behind the infamous 2016 hack that ended up draining $11 billion from the Ethereum DAO accoridng to a joint investigation with Chainalysis so let’s read more today in our latest cryptocurrency news.
Journalist Laura Shin alleged that Austrian programmer Toby Hoenisch is actually responsible for hacking the DAO and he is the former CEO of TenX who of course, denied the allegations. The former crypto startup CEO Denied stealing an ETH stash that today can be worth more than $11 billion and the allegations made against him were initially published by Forbes. The Journalist Laura Shin accused him of being behind the 2016 hack of the DAO as one of the biggest cryptocurrency hacks ever. The DAO was one of the world’s first decentralized autonomous organizations and served as an open-source venture fund platform for crypto rpoejcts and it raised 12.7 million ETH which was worth $150 million at the time.
When it was hacked in 2016, someone drained nearly a third of the project’s funds, and Shin along with Chainalysis tracked the movement of the stolen funds which eventually led her to Hoenisch. He denied the allegations in the article and told her that her statements and conclusions is inaccurate. According to Shin, whoever turned out to hack the DAO swapped the stolen ETH for Bitcoin and then sent the BTC to a wAsabi Wallet which is often used to obfuscate BTC transactions which is a process called “mixing” however Chainalysis was able to “de-mix” the transactions and trace them to four different platforms.
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Shin said that the evidence was there as it showed someone already exchanged the BTC for the privacy coin grin that was withdrawn to a non-custodial Grin node to a name “grin.toby.ai.” The name was used by Hoenisch on multiple social media accounts and was one of his email addresses while the IP address hosting the node also hosted another node dubbed “TenX which is the name of the company that Hoenisich was a CEO of. TenX shut down after raising $80 million in an ICO because its card issuer Wirecard became insolvent and has since been rebranded as a stablecoin project Mimo Capital. Shin wrote:
“As I noted earlier, after being sent a document laying out the evidence that he was the hacker and asking for comment for my book, Hoenisch wrote that my conclusion is ‘factually inaccurate.’”
According to Shin, Hoenisch was clued up on the DAO code and wrote blog posts warning about hacks. Shin also said that she researched the hack for her new book which debuted recently under the name “The Cryptopians: Idealism, Greed, Lies and the Making of the First Big Cryptocurrency Craze.”
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