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 cryptocurrency. On Tuesday, during European hours, Arkham detected two significant transactions - $117 million and $58 million - originating from the wallet controlling the exploit proceeds on the Ethereum blockchain. ZachXBT further revealed that a portion of the stolen funds is being transferred across different blockchains. Approximately $1.5 million was routed from Ethereum to Bitcoin via Thorchain, while an additional $78,000 was channeled through the Umbra privacy protocol. Notably, North Korean hacking group Lazarus has previously employed similar protocols, such as Thorchain, for laundering purposes. The use of cross-chain transfers and privacy tools at this stage suggests that the attacker is likely preparing to disperse the funds further across multiple platforms. The KelpDAO breach is one of the most significant DeFi incidents in recent months, prompting widespread negative sentiment and fears of potential contagion across the DeFi sector. In response, Arbitrum, a Layer 2 network, has frozen $71 million in ether linked to the hack, potentially pressuring the exploiter to expedite the movement and laundering of the remaining funds.