KuCoin Hacker Sent over $9 Million to Centralized Exchanges to Buy Bitcoin
KuCoin hacker had used not decentralized exchange for laundering stolen funds but had also utilized centralized exchange for the purpose. According to Chainalysis, almost $9 million of stolen funds have moved over centralized exchanges.
$13 Million via Decentralized Exchanges
The hacking incident took place on Sep.25 in which hot wallets of the exchange were accessed by the hacker and resulted in a loss of more than $281 million in different coins including Bitcoin, Ethereum, XRP, Litecoin, and many others. After the incident, many decentralized platforms announced to freeze funds. For instance, Tether and Velo Labs had successful frozen funds. Besides attempts to recover stolen digital assets, hacker laundered over $13 million via decentralized exchange.
Chainalysis’s analysis of the KuCoin hack unveils the movement of $281 million in different coins. After the hacking attack, reports told funds transferred to decentralized exchanges. UniSwap and Kyber were the two major decentralized exchanges where millions of coins were dumped.
Many crypto experts said centralized exchanges were preferred for laundering money as they would not control any action over the platform. But Chainalysis’s report shows that hackers also transferred assets to centralized exchanges for purchasing Bitcoin. KuCoin thief used most of Litecoin to swap with BItcoin. However, users can pass easily through decentralized exchanges without having to submit details to comply with KYC and AML policies of the exchange.
Hackers Purchased 875 BTC
According to Chainalysis’s report, nearly 875 BTC has been purchased by hackers from centralized exchanges. The hackers have swapped Bitcoin via different coins including Litecoin. After purchasing, almost 683 BTC has been moved for mixing services.
Since the attack, KuCoin has terminated the services of deposits and withdrawals for top digital assets, including Ethereum and XRP. The trading volume of the trading platform has also decreased since the incident.
Chainalysis reveals another information that all stolen 26,733 LTC transferred to different cryptocurrency exchanges. The majority of these LTC were used to purchase Bitcoin over centralized exchanges.
KuCoin has recently updated its community that its team is working hard to recover funds. And the exchange is in contact with other cryptocurrency exchanges in this regard.
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