Hacker Converts $39 Million in Ethereum to DAI in Just 50 Minutes

A hacker exploited a vulnerability in Tornado.Cash to swiftly convert 8,960 ETH into the stablecoin DAI, resulting in a transaction of $39.26 million within just 50 minutes. This incident highlights potential security gaps and raises concerns about its impact on both spot markets and DAI liquidity. While no official statements have been issued by key industry players like Vitalik Buterin yet, this unauthorized sale is already affecting the ETH and DAI market segments. However, it hasn’t resulted in any significant disruptions to DeFi TVL or exchange liquidity.