Millions in Stolen Cryptocurrency Being Laundered by KelpDAO Hackers, Data Reveals

According to on-chain analyst ZachXBT and data from Arkham, the hackers responsible for the $290 million KelpDAO heist have started to launder their stolen funds. Arkham's data indicates that the wallet controlling the exploit's proceeds made two significant transfers, totaling $117 million and $58 million, on the Ethereum blockchain during European hours on Tuesday. ZachXBT notes that a portion of the stolen funds is already being moved across different chains, 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 characteristic of the initial 'layering' phase of money laundering, suggesting that the attacker may be planning to further distribute the funds across various platforms. The KelpDAO exploit is one of the most significant breaches in the decentralized finance sector in recent months, triggering a wave of negative sentiment and fears of contagion spreading to other blockchains. In response to the hack, Layer 2 network Arbitrum has frozen $71 million in ether linked to the breach, potentially pressuring the exploiter to accelerate their efforts to move and launder the remaining funds.