What are coin mixers, and how are they used in high-profile hacks?
Crypto mixers, or tumblers, are basically smart contracts used to hide the origin of crypto transactions. Hackers send their cryptocurrency to a mixer’s address. The mixer blends the crypto with coins sent by other users, thereby concealing the identity of each contributor. Subsequently, the mixer redistributes the coins, effectively obscuring their original source.
For example, if 10 users each mix 1 Ether (ETH), they each contribute and receive different ETH. The mixers’ ability to conceal funds has a dual nature: Hackers use them to hide stolen funds, while others enhance financial privacy, protecting against surveillance. Despite their controversial use, mixers remain a tool for those seeking greater crypto anonymity
Hackers frequently combine crypto mixing with other laundering techniques such as decentralized exchange (DEX) trading, peel chains and crypto bridging. DEX trading involves