Hackers behind the recent KelpDAO exploit have begun laundering approximately $290 million in stolen cryptocurrency, shifting large sums across networks to obscure the origin of the funds. Blockchain investigators, including onchain analyst ZachXBT, reported that major transfers have already taken place on the Ethereum network.
Arkham analytics data shows two large transactions worth about $117 million and $58 million were moved from wallets tied to the exploit during European trading hours on Tuesday. Investigators also identified cross-chain activity, including roughly $1.5 million bridged from Ethereum to Bitcoin through Thorchain, along with an additional $78,000 routed using the privacy-focused protocol Umbra.
Privacy Tools and Cross-Chain Bridges Complicate Tracking Efforts
The use of privacy tools and cross chain bridges is widely associated with the early “layering” stage of money laundering, where stolen funds are split and transferred across multiple platforms to reduce traceability. Analysts note that similar techniques have been linked to past operations by sophisticated hacking groups, including state-backed actors.
The breach, considered one of the largest decentralized finance exploits in recent months, has intensified concerns about contagion across interconnected protocols. Market participants fear that continued movement of stolen funds could increase liquidity stress and trigger additional disruptions across lending and liquidity platforms.
Earlier responses from industry participants included freezing approximately $71 million in Ether linked to the exploit on the Arbitrum network. Analysts suggest this action may prompt attackers to accelerate laundering efforts for the remaining funds still under their control.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.