KuCoin Hacker is Using Decentralized Exchange Uniswap to Launder Stolen Tokens

September 29, 2020 2:38 PM UTC

On September 26, cryptocurrency exchange KuCoin announced a hack worth of almost $200 million of stolen assets. Hacker keeps transferring stolen crypto assets to the Dex platform after a massive cyber attack. 

Whale Alert, a crypto tracking service, has published a report that shows SNX tokens, worth more than thousands of dollars, have been transferred to Uniswap, the largest decentralized exchange, by KuCoin hackers.

The report further states that $5 million worth of LINK and SNX has been deposited to anonymous wallets on September 29. Whale Alert spokesperson briefs that the hacker uses Uniswap and Kyber to convert almost $4.2 million to ETH. The tracking firm claims that its experts have identified at least three ETH wallets holding hacked assets. “I don’t think they realize how visible their tracks are,” a spokesperson at Whale Alert said.

Centralized Exchange Immediately Responded to Protect Hack Assets

As $200 million KuCoin hack news hit the crypto market, several centralized crypto exchanges have taken precautionary measures to protect stolen crypto assets from withdrawing. A report shows that over $130 million funds have been frozen. 

Primitive Ventures founding partner Dovey Wan supposed that the hackers were “DeFi noobs” because they initially attempted to withdraw the stolen tokens through Binance, the largest centralized cryptocurrency exchange. “The hacker who hacked Kucoin apparently is a Defi noob, tried to sell on Binance and didn’t swap the tainted USDT on Curve,” Wan said.

DeFi crypto mixers natural could be a beneficial tool for hackers, Wan said:

“All Defi infra are natural mixers with ultra low slippage […] Hackers with normal IQ will soon figure out, this is not some alpha leak and Defi infra is designed to serve all purposes […] If a hacker can hack a CEX, no point he/she has no idea how to successfully liquidate via DEX.”

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