Attackers Use DeFi Market to Cover Their Tracks
Hackers bought bitcoin for $ 9 million through laundered cryptocurrencies
DeFi token market is going through hard times
International consortium of news organizations developing transparency standards.
Hackers bought $ 9 million worth of bitcoin through centralized exchanges using altcoins laundered in decentralized finance protocols
The hackers of the KuCoin cryptocurrency exchange began to accumulate all the stolen funds in bitcoin. Analysts of the blockchain firm Chainalysis drew attention to this..
According to the official report on the movement of stolen funds, on September 25, attackers stole more than $ 275 million in cryptocurrencies from KuCoin, making the incident one of the largest in history. In particular, hackers have stolen:
- 1008 BTC ($ 10,758,404);
- 11,543 ETH ($ 4,030,957);
- 19,834,042 USDT-ETH ($ 19,834,042);
- 18 495 798 XRP ($ 4 254 547);
- 26,733 LTC ($ 1,238,539);
- 999 160 USDT ($ 999 160);
- $ 147 million in various ERC-20 tokens;
- $ 87 million in Stellar tokens.
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DeFi as a means of covering your tracks
As of October 2, Chainalysis concluded that all of the stolen bitcoins (1,008 BTC) were divided into two addresses, one of which contains 201 BTC, and the other 807 BTC. A rather controversial action by hackers turned out to be the purchase of 875 BTC on centralized exchanges using altcoins laundered through decentralized protocols (DeFiDecentralized Finance (DeFi) is financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More) like Uniswap and Kyber. Whether the purchase came from verified accounts or fake accounts remains unknown.
Of the recently acquired 875 BTC, about 683 BTC were immediately sent to Bitcoin mixers to cover their tracks..
Of the 19.8 million USDT stablecoins (on the ERC-20 protocol), just over 50 thousand USDT were split into various DeFi protocols and centralized exchanges:
- 20 thousand USDT on Uniswap;
- 11 thousand USDT on the MXC exchange;
- 1000 USDT on the Poloniex exchange;
- 500 USDT on FatBTC.
Another 3,000 USDT sent to three separate addresses and the remaining 15,400 USDT remains unspent in the intermediary wallet.
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All 26,733 LTC stolen from the attack were transferred to exchanges. Whether centralized or not, the firm does not specify.
“Since [DeFi] platforms never take over the custody of funds, instead simplifying direct transfers, users can execute swaps without the need to go through KYC verification or provide trade data recorded in the order book, as is the case with standard exchanges.” – noted in Chainalysis.
Chainalysis also published a timetable for the movement of the stolen funds. The stolen LINK tokens were selected as an example..
Green lines – movement of ERC-20 tokens between wallets. Purple – between DEX exchangers. Source: chainalysis.com
First, the exchange hackers moved more than 200 thousand LINK to an intermediary wallet with the address “0xC194 …”. The intermediary wallet then sends 12,552 LINK to the Kyber Network, which converts LINK tokens using Uniswap to 360 ETH.
The firm’s analysts say this is the first time DeFi protocols have been used to launder stolen funds. Presumably, the cybercriminals chose Uniswap and other decentralized sites precisely because of the popularity around the entire DeFi market..
At the same time, prices for DeFi tokens began to sink en masse due to the scandal around the BitMEX exchange. The first 10 decentralized finance tokens on a weekly scale are experiencing an average collapse of 10%. The sensational token turned out to be the main outsider.As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More YFI (-27.9%).
Millions in Bitcoin Ethereum & Tokens Hacked From KuCoin Will Be
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CONTENTS DeFi – a new and rapidly growing trend in global finance Many projects bring their founders millions of dollars It is not clear yet …