Transit Swap Hacker Launders $1.8M ETH via Tornado Cash as DeFi Breaches Mount

On May 21 the Transit Finance hacker transferred 832.9 ETH worth roughly $1.8 million to Tornado Cash, sharply reducing recovery prospects for the $1.88 million exploit. The move follows two major May 20 incidents: Bankr’s AI-driven platform losing $440,000 across 14 auto-generated wallets via prompt-injection attacks and KelpDAO suffering a $292 million rsETH theft after RPC infrastructure and single-signer controls were compromised. LayerZero Labs has begun tightening signer protocols while Bankr suspended operations and promised reimbursements. The rapid succession of attacks has intensified short-term risk-off sentiment around Ethereum, currently holding near $2,129, and heightened scrutiny of DeFi bridges, AI wallets, and privacy mixers.