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

According to on-chain analyst ZachXBT and data from Arkham, the perpetrators of the $290 million KelpDAO heist have initiated the laundering process of their illicitly obtained 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. Furthermore, ZachXBT has reported that a portion of the stolen cryptocurrency has started moving 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 - a tactic previously employed by North Korean hacking group Lazarus. The utilization of cross-chain routing and privacy tools is characteristic of the initial 'layering' phase of money laundering, suggesting that the attacker is preparing to further distribute the funds across multiple platforms. The KelpDAO breach is among the most significant DeFi security incidents in recent months, triggering widespread negative sentiment and concerns about potential contagion spreading to other blockchains. In response to the breach, Layer 2 network Arbitrum has frozen $71 million in ether linked to the hack, a move that may pressure the exploiter to expedite the transfer and laundering of the remaining funds.