Hackers who hacked the KuCoin exchange use the Uniswap decentralized exchange to convert altcoins into Ethereum.
Kucoins hacker begins laundering his $150,000,000.
He started swapping his $OCEAN for ETH via Uniswap.
He already dragged the price down by around 4% in less than an hour and doesn’t seem to be slowing down.
Due to low liquidity for this token, he is going to crash it hard. pic.twitter.com/gKcsgpUe3a
Tracking the movement of funds, user @UnderTheBreach noticed that due to the hacker’s actions, the price of the Ocean Token Ethereum asset sank by 4% in just an hour.
The Block researcher Larry Cermak stressed that Uniswap is being used by hackers for the first time to convert stolen funds.
According to Bitfinex technical director Paolo Ardoino, money laundering through DEX may entail “interesting consequences” that cast a shadow on liquidity providers.
Non-custodial exchanges of the new generation will support confidential transactions, Ardoino suggested.
On Saturday, September 26, the KuCoin cryptocurrency exchange reported an unauthorized withdrawal of funds from hot wallets. According to preliminary estimates, the damage could reach $150 million.
Shortly after the hack, the Bitfinex exchange froze 13 million USDT on the EOS blockchain, and Tether blocked 20 million USDT on one of the Ethereum addresses “as a precaution.”
Similar measures were taken by other participants of the cryptocurrency market, information about which is posted on the KuCoin website. From the latest updates:
marked as suspicious Bitcoin addresses 12FACbewf5Fy9nmeaLQtm6Ugo5WS8g2Hay and 1TYyommJW3uhjhcnHhUSuTQFqSBAxBDPV;
Orion Protocol announced the reissue of ORN tokens;
The Covesting project has frozen COV tokens sent to a suspicious address. VIDT_Datalink will take similar measures;
The developers of Silent Notary will reissue SNTR in exchange for the tokens that the hackers have.
The head of KuCoin, Johnny Liu, wrote that the exchange is preparing to resume depositing and withdrawing funds.