THELOGICALINDIAN - Elliptic says the Kucoin hacker has awash 171 actor account of tokens via decentralized exchanges dex platforms like Uniswap Kyber Network Tokenlon The about-face to dex applications comes afterwards centralized projects came to the aid of the abandoned barter by blocking any cashing out of the drudge accompanying funds
For the accomplished few days, the blockchain assay close says it has been seeing baseborn tokens actuality swapped with censorship-resistant cryptocurrencies like bitcoin. Despite this change in tactics, Elliptic insists it has the technology that can still trace the movement of such funds.
In a blog post on September 29, Egg-shaped cofounder and arch scientist, Tom Robinson appear that of the baseborn assets, “approximately US $152 actor was fabricated up of Ethereum-based tokens (ERC20s), including Tether (USDT), Chainlink (LINK), and Ocean Protocol (OCEAN).”
Robinson explains that these tokens are issued on blockchains such as Ethereum by “organizations that accept the ability to benumb accounts and balance the tokens.”
Indeed, on September 30, Kucoin said it had managed to balance about $140 actor afterwards ten projects cooperated with it by either swapping or replacing the baseborn tokens. On acumen that this access had been blocked, the hacker(s) “tried to advertise some of the tokens at two approved exchanges.”
However, according to Robinson, this bed-making avenue was anon blocked as exchanges anon deployed blockchain assay tools. Blockchain ecology accoutrement such as Elliptic’s can “identify whether deposited crypto assets originated from the Kucoin hack, and benumb any accounts accepting such funds.”
At the moment, dex applications accommodate the abyss with a agency of exchanging the baseborn tokens for Ether or added ERC20s. With their huge volumes and abridgement of KYC checks, dex platforms are now an accessible best for crypto money launderers.
Still, Robinson makes the altercation that Elliptic’s accepted ecology accoutrement can trace the breeze of the baseborn funds:
“Unlike centralized exchanges, which are dead-ends back it comes to archetype the breeze of funds, with DEXs aggregate is recorded and arresting on the blockchain.”
With $140 actor now recovered while $17.1 actor is already lost, it charcoal to be apparent if the actual $124 million, which is bedeviled in censorship-resistant cryptocurrencies, can be recovered.
What are your thoughts about the use of dex platforms by abyss back bed-making crypto? Share your angle in the comments area below.
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