- A hacker who stole $200 million from KuCoin exchange has started laundering it
- Crypto projects have frozen a large amount of the hacked funds
- The loot was made up of different cryptos including BTC and Ether
Cryptocurrency News Today – the hacker behind the heist that saw KuCoin lose $200 million from its exchange is reportedly attempting to launder the funds. The hacker’s loot is made up of several different cryptos, including BTC, ETH, and XRP. About 150 of the affected tokens are ERC-20 tokens (coins based on Ethereum’s Blockchain) including Synthetix (SNX). To cash out, the bad actor must trade the entire digital asset for fiat (USD).
Yesterday, the hacker sold several amounts of Synthetix. SNX or Synthetix is the token that reportedly powers the decentralized derivatives platform. Today, the hacker has shifted to gold. Let us see details of his/her activity as they attempt to launder the stolen funds.
The Hacker has Moved $1.1 Million Worth of SNX to Uniswap
The Whale Alert claims that the hacker has moved $1.1 million worth of Synthetix to Uniswap exchange. As a decentralized exchange, the hacker does not confirm its identity and no one can stop the hacker from trading. From Uniswap, the crook can exchange the stolen funds for Ethereum or other Ether-based coins. Since these transactions are recorded on the network, the hacker has to finish laundering the money going forward.
One way to achieve this will be to mix the stolen tokens. This can be done by placing them in software that obscures the origin of transactions. Breaking it down, after the hacker managed to move $1.1 million worth of SNX, he/she also moved millions of USD worth of other cryptos. The bulk of the funds were in Chainlink (LINK) to unknown wallets, the Whale Alert claims. Some small crypto projects, that have been concerned that the hacker could dump the funds on the market, invalidated the stolen funds.
KuCoin has Offered a $100,000 Bounty to Anyone With Information About the Hacker
Additionally, other crypto luminaries, who remarked that the incident undermined the principle of decentralization have been on edge. Recall from a report from September 28, that different crypto projects had to freeze or planned to freeze or invalidate more than $130 million worth of the affected tokens. Since then onwards, crypto projects have stopped the hacker from using the remaining $10-15 million of the stolen funds.
According to KuCoin, the hacker drained the stolen funds by using a leaked key to gain access to its hot wallets. Hot wallets are connected to the internet. Whole cold wallets are held offline. At press time, the hacker remains at large. KuCoin exchange has offered a $100,000 bounty to anyone who can provide valid information about the heist.