Millions in Stolen Cryptocurrency Being Laundered by KelpDAO Hackers

According to ZachXBT, a blockchain sleuth, and data from Arkham, the perpetrators of the $290 million KelpDAO heist have initiated the laundering process of their stolen funds. On Tuesday, during European hours, the wallet controlling the exploit's proceeds executed two transactions on the Ethereum blockchain, totaling $117 million and $58 million. ZachXBT further revealed that a portion of the stolen cryptocurrency has started moving between chains, with approximately $1.5 million being transferred from Ethereum to Bitcoin via Thorchain, and an additional $78,000 routed through Umbra, a privacy protocol. The use of cross-chain routing and privacy tools, similar to those employed by North Korean hacking group Lazarus, indicates the attacker is likely in the 'layering' phase of money laundering, preparing to disperse the funds across multiple platforms. The KelpDAO breach is one of the most significant DeFi incidents in recent months, triggering negative sentiment and fears of contagion spreading throughout the DeFi sector. In response to the breach, Layer 2 network Arbitrum froze $71 million in ether linked to the hack, potentially pressuring the exploiter to expedite the movement and laundering of the remaining funds.