KuCoin hacker on the move; Stolen funds worth $ 665K transferred

According to a Pío By Whale Alert, some of the funds stolen during the KuCoin Hack last month are now moving again. The blockchain tracking platform reported that 1,814 ETH ($ 665,980) of the aforementioned funds were moved from the wallet in question, a wallet named “Kucoin Hack 2020 “, to an unknown wallet today.

Before that, 4000 ETH or $ 1,469,285 was moved from the same address to another unknown wallet.

KuCoin has been surveillance the movement of these funds for quite some time, with the exchange flagging multiple suspicious directions over the course of the last 3 weeks. It is likely that since the funds have not moved from this direction for several hours, it will also be marked soon.

After what was confirmed as the third largest chop In the history of cryptocurrencies, many exchanges came together to prevent the hacker from moving funds, especially by flagging the suspicious addresses that the funds were transferred to.

Source: Elliptic

This was possible as of the $ 281 million worth of stolen funds, $ 152 million were Ethereum-based tokens that are not censorship-resistant, meaning organizations have the power to freeze accounts and recover tokens.

In many cases, this is exactly what happened. Bitfinex CTO Paolo Ardoino confirmed that Throws had successfully frozen a total of 22 million USDT tokens (about $ 22 million) and Ampleforth disabled the transfer of 14.82 AMPL tokens ($ 10.8 million) from the attacker.

On the other hand, most of the tokens affected by the hack chose to complete a Token Swap, in which the committed funds were replaced and secured.

While Token Swaps solved one problem on centralized exchanges, they created another one on decentralized exchanges. The KuCoin hacker reportedly exchanged the stolen tokens, which were at risk of being frozen, for a censorship-resistant cryptocurrency such as Bitcoin.

As reported by Elliptic, funds worth $ 19.5 million were sold in DEX, of which $ 10.5 million were sold on Uniswap alone.

The exchange of stolen tokens for censorship-resistant cryptocurrencies is a glaring example of loopholes that exist and dilute attempts to prevent money laundering through these systems. Such loopholes, by extension, justify the adoption of more AML KYC guidelines by DEXs in the future.

This is a machine translation of our English version.

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