Millions in Stolen Cryptocurrency Being Laundered by KelpDAO Hackers

According to on-chain analyst ZachXBT and data from Arkham, the perpetrators of the $290 million KelpDAO heist have initiated the process of laundering their stolen funds. Arkham's data reveals that the controlling wallet made two significant transfers, totaling $117 million and $58 million, on the Ethereum blockchain during European hours on Tuesday. ZachXBT reported that a portion of the stolen cryptocurrency is being moved across different blockchains, with approximately $1.5 million being transferred from Ethereum to Bitcoin via Thorchain, and an additional $78,000 routed through the Umbra privacy protocol. This cross-chain movement and use of privacy tools are indicative of the 'layering' stage of money laundering, suggesting that the attacker is preparing to further disperse the funds. The KelpDAO breach is one of the most significant DeFi breaches in recent months, contributing to a wave of negative sentiment and contagion fears within the DeFi sector. In response to the hack, Layer 2 network Arbitrum has frozen $71 million in ether linked to the breach, potentially pressuring the attacker to accelerate their efforts to move and launder the remaining funds.