Millions in Stolen Cryptocurrency Being Laundered by KelpDAO Hackers

According to ZachXBT, a blockchain investigator, and data from Arkham, the perpetrators of the $290 million KelpDAO heist have initiated the process of laundering their stolen funds. On Tuesday, during European business hours, the wallet controlling the exploit's proceeds made two significant transactions on the Ethereum blockchain, totaling $117 million and $58 million. Furthermore, ZachXBT discovered that a portion of the stolen cryptocurrency has been transferred across different blockchain networks. Approximately $1.5 million was moved from Ethereum to Bitcoin using Thorchain, while an additional $78,000 was routed through Umbra, a privacy-focused protocol. Notably, North Korean hacking group Lazarus has previously employed similar protocols for laundering purposes. The use of cross-chain transfers and privacy tools is a common practice in the initial stages of money laundering, suggesting that the attacker may be preparing to disperse the funds further. The KelpDAO breach is one of the most significant DeFi security incidents in recent months, contributing to a wave of negative sentiment and concerns about potential contagion across the DeFi sector. In response to the hack, Arbitrum, a layer 2 network, froze $71 million in ether linked to the incident, which may pressure the hacker to accelerate their efforts to move and launder the remaining funds.