The KuCoin Hack: What We Know So Far and How the Hackers are Using DeFi Protocols to Launder Stolen Funds
2020-09-29 • Chainalysis •
https://blog.chainalysis.com/reports/kucoin-hack-2020-defi-uniswap/
Chainalysis reported that the September 2020 KuCoin hack stole more than $275 million in cryptocurrency, including BTC, ETH, USDT, XRP, LTC, ERC-20 tokens, and Stellar assets. As of the update, the stolen BTC was split between two addresses, the attackers had bought and withdrawn about 875 BTC from centralized exchanges using stolen altcoins, and roughly 683 BTC of that amount had gone to mixing services. The report highlights DeFi laundering: KuCoin hackers used decentralized exchanges such as Uniswap and Kyber to swap stolen ERC-20 tokens, including LINK, into ETH without regulated exchange custody or KYC friction. Chainalysis notes that Reactor could still trace many of these fund flows because it supported the relevant ERC-20 tokens, making the case a practical example of DeFi complicating but not preventing blockchain investigations.