After a large hack on the crypto currency exchange KuCoin, the cyber criminals continue to transfer the stolen crypto currency to decentralized exchanges.
According to data from the crypto transaction monitoring service Whale Alert, the KuCoin hackers continue to send Synthetix Network Tokens (SNX) worth thousands of dollars to Uniswap. This is the largest decentralized financial protocol (DeFi) by value deployed.
On 28 September, the hacker made another series of transactions in which stolen money was transferred from KuCoin to the large decentralised stock exchange Uniswap. According to data from Whale Alert, the hackers today sent at least $1.2 million in stolen SNX tokens to this DEX in four blocks of transactions.
According to data from Whale Alert, the KuCoin hackers also sent Chainlink (LINK) and SNX worth $5 million to unknown wallets. A spokesperson for Whale Alert told Cointelegraph that at least $4.2 million of this amount was actually converted to ether (ETH) using uniswap and cyber.
The analysts of Whale Alert were able to identify at least three ETH addresses that contain coins from the KuCoin hack. I dont think they are aware of how visible their traces are, said a spokesperson for Whale Alert.
After the KuCoin hack on 26 September, several centralised stock exchanges took measures to prevent hackers from withdrawing the stolen money. Up to $129 million of the estimated $200 million stolen was frozen.
Dovey Wan, founding partner of block-chain-based investment company Primitive Ventures, believes that the KuCoin hackers are apparently DeFi noobs because they first tried to sell the stolen tokens on the worlds largest centralized stock exchange, Binance. The KuCoin hacker is apparently a defi-noob. He tried to sell on Binance and did not exchange the USDT on Curve, says Wan.
Wan said that DeFi could be a handy tool for hackers because the DeFi infrastructure is actually made up of natural crypto currency mixers. These are services that allow users to mix their coins with those of other users to remain undetected:
The entire defibrillation infrastructure is a natural mixer with extremely low slippage. Hackers with normal IQs will soon realize that this isnt just any alpha leak and that the defi infrastructure is designed to serve all purposes. If a hacker is able to hack a centralized exchange, it doesnt make sense that he/she has no idea how to liquidate the money through decentralized exchanges.