KelpDAO hackers are laundering millions in stolen crypto, data show
KelpDAO hackers are moving $290M in stolen crypto across blockchains, using privacy tools to mask the trail as DeFi contagion fears move through the sector.
By Oliver Knight|Edited by Omkar Godbole Apr 21, 2026, 9:12 a.m. Make preferred on
What to know:
- Hackers are laundering $290 million in stolen crypto by moving large sums across the Ethereum and Bitcoin blockchains.
- Blockchain investigators have tracked the funds through privacy tools and cross-chain bridges often favored by state-sponsored groups.
- The breach has triggered widespread liquidations across the decentralized finance sector amid fears that the exploit could impact other protocols.
The hackers that stole $290 million in the KelpDAO exploit are beginning to launder their ill-gotten gains, according to onchain sleuth ZachXBT and data from Arkham.
Arkham shows that the wallet in control of the proceeds of the exploit sent two transfers of $117 million and $58 million on the Ethereum blockchain during European hours on Tuesday.
ZachXBT reported that a portion of the stolen funds has already begun moving across chains. Roughly $1.5 million was bridged from Ethereum to Bitcoin via Thorchain, alongside an additional $78,000 routed through the privacy protocol Umbra. North Korean hackers Lazarus Group have previously used protocols like Thorchain to launder funds.
Cross-chain routing and privacy tools are commonly used in the early ‘layering’ stage of laundering, suggesting the attacker may be preparing to further disperse the funds across multiple venues.
The KelpDAO exploit is one of the largest decentralized finance breaches in recent months, spurring a wave of negative sentiment across the DeFi sector and fears over contagion will spread to other blockchains.
Layer 2 network Arbitrum said Monday it had frozen $71 million in ether linked to the hack, a move that could pressure the exploiter to accelerate efforts to move and launder the remaining funds.
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