KuCoin Cryptocurrency Heist: Latest Developments and the Employment of Decentralized Finance Protocols by Hackers for Money Laundering Purposes
In a recent development, hackers involved in the KuCoin exchange hack have been found to use Decentralized Finance (DeFi) platforms to launder stolen funds.
According to reports, the hackers sent 12,552.96 LINK tokens from the address "0xC194..." to Uniswap, a decentralized exchange (DEX), and received 360.60 ETH back to the same address. This transaction highlights the difficulties investigators face in tracking and recovering funds on DeFi platforms.
The hackers are estimated to have sold at least $13 million worth of ERC-20 tokens before the majority was frozen by the underlying smart contracts. However, the specific DeFi platforms used in the KuCoin hack for laundering, other than Tornado Cash, have not been explicitly named in the search results.
Tornado Cash is a DeFi platform known for enabling the mixing and anonymizing of crypto assets, making it difficult to trace the origin of funds. Some transactions were even reversed via forking, further complicating the investigation.
In a positive note, the increased use of ERC-20 tokens on DeFi platforms can aid law enforcement and compliance professionals in tracing funds. To learn more about how cybercriminals are exploiting DeFi and other emerging cryptocurrency technologies, sign up for the 2021 Crypto Crime Report.
It's worth noting that all addresses identified so far as belonging to the hackers have been labelled in the company's products. Training and professional services are also available to help investigators master techniques for following these types of transactions.
Further updates on funds stolen in the KuCoin hack will be provided as more information becomes available. Stay tuned for more updates on this developing story.
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