Why Crypto Recovery Becomes “Near Zero” After Mixers
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According to Marwan Hachem, CEO of blockchain security firm FearsOff, the laundering flow seen in the Jan. 10 exploit follows a classic large-scale playbook. Funds were converted via cross-chain swaps, broken into roughly 400 ETH chunks, and funneled into Tornado Cash — a sequence designed to minimize attention and complicate forensic tracking.
Once assets enter a mixer, recovery options shrink dramatically. Hachem describes Tornado Cash as a “kill switch for traceability,” noting that recovery chances typically drop to near zero. The incident itself began with a social engineering attack, according to blockchain investigator ZachXBT, who said the victim was tricked into revealing a seed phrase — a reminder that even sophisticated laundering often starts with a simple human vulnerability.
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Bye bye millions ;-(