Data reveals KelpDAO attackers are in the process of laundering millions in stolen digital assets. KelpDAO hackers are transferring $290M in stolen crypto across various blockchains, utilizing privacy-enhancing tools to obscure their tracks while concerns about a DeFi contagion spread throughout the industry.
What to know:
— The attackers are laundering $290 million in stolen crypto by shifting large amounts across the Ethereum and Bitcoin networks.
— Blockchain analysts have followed the funds through privacy tools and cross-chain bridges frequently utilized by state-backed entities.
— The security breach has caused extensive liquidations across the decentralized finance space due to fears that the vulnerability could affect other protocols.
In this article
The perpetrators behind the $290 million KelpDAO hack are starting to launder their illicit profits, according to on-chain investigator ZachXBT and Arkham data.
Arkham data indicates that the wallet controlling the exploit’s proceeds executed two transfers of $117 million and $58 million on the Ethereum network during European business hours on Tuesday.
ZachXBT noted that some of the stolen assets have already started moving between chains. Approximately $1.5 million was transferred from Ethereum to Bitcoin via Thorchain, with an additional $78,000 routed through the privacy protocol Umbra. The Lazarus Group, linked to North Korea, has previously employed protocols like Thorchain for laundering.
Cross-chain routing and privacy tools are typically used in the initial ‘layering’ phase of money laundering, indicating the attacker may be preparing to further disperse the funds across multiple platforms.
The KelpDAO exploit ranks among the most significant decentralized finance breaches in recent months, sparking negative sentiment across the DeFi sector and raising fears that the contagion could spread to other blockchains.
Layer 2 network Arbitrum announced on Monday that it had frozen $71 million in ether connected to the hack, a move that could pressure the exploiter to accelerate efforts to move and launder the remaining funds.