{"id":591455,"date":"2026-04-22T08:00:15","date_gmt":"2026-04-22T12:00:15","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=591455"},"modified":"2026-04-22T04:40:12","modified_gmt":"2026-04-22T08:40:12","slug":"kelpdao-hacker-launders-eth-via-thorchain-network-says-it-is-neutral","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/kelpdao-hacker-launders-eth-via-thorchain-network-says-it-is-neutral\/","title":{"rendered":"KelpDAO hacker launders ETH via THORChain &#8211; Network says it is &#8216;neutral&#8217;"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The illicit actor behind KelpDao\u2019s $294 million exploit has reportedly laundered funds. As per Arkham\u2019s data, the attacker had divided the stolen funds into three different wallets. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The wallets include 25K Ethereum [ETH] worth $57.6 million, 25.7K ETH worth $59.2 million, and 25K ETH worth $57.9 million, respectively.\u00a0\u00a0<\/span><\/p>\n<figure id=\"attachment_591477\" aria-describedby=\"caption-attachment-591477\" style=\"width: 2396px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses.png\"><img decoding=\"async\" class=\"wp-image-591477 size-full\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses.png\" alt=\"Funds moved into 3 wallet addresses\" width=\"2396\" height=\"1344\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses.png 2396w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-300x168.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-1024x574.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-768x431.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-1536x862.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-2048x1149.png 2048w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-640x360.png 640w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-320x180.png 320w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-160x90.png 160w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/Funds-moved-into-3-wallet-addresses-1200x673.png 1200w\" sizes=\"(max-width: 2396px) 100vw, 2396px\" \/><\/a><figcaption id=\"caption-attachment-591477\" class=\"wp-caption-text\">Source: Arkham<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">In this, only the third wallet address containing 25K ETH started laundering and is now left with 3.8K ETH worth $8 million. For perspective, the laundered funds were bridged to <a href=\"https:\/\/ambcrypto.com\/coins\/bitcoin\/\" target=\"_blank\" rel=\"noopener\">Bitcoin [BTC]<\/a>\u00a0via THORChain [RUNE].<\/span><\/p>\n<h2><strong>How did THORChain&#8217;s identity check fault help the hacker? <\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">With about 99% of the funds flowing, the swap volume of <a href=\"https:\/\/ambcrypto.com\/coins\/thorchain\/\" target=\"_blank\" rel=\"noopener\">THORChain<\/a> had reached $540 million in the past 24 hours, resulting in earning fees of $660K at press time.<\/span><\/p>\n<figure id=\"attachment_591470\" aria-describedby=\"caption-attachment-591470\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-scaled.png\"><img decoding=\"async\" class=\"wp-image-591470 size-full\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-scaled.png\" alt=\"THORChain Swap Pool\" width=\"2560\" height=\"930\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-scaled.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-300x109.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-1024x372.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-768x279.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-1536x558.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-2048x744.png 2048w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-Swap-Pool-1200x436.png 1200w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-591470\" class=\"wp-caption-text\">Source: THORChain Explorer<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The reason behind choosing THORChain was that it enables users to swap assets across blockchains without KYC, making things simpler for the attacker.<\/span><\/p>\n<p>However, THORChain stood in defense when it noted,<\/p>\n<figure id=\"attachment_591469\" aria-describedby=\"caption-attachment-591469\" style=\"width: 790px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-stands-in-defense.png\"><img decoding=\"async\" class=\"wp-image-591469 size-full\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-stands-in-defense.png\" alt=\"THORChain stands in defense\" width=\"790\" height=\"818\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-stands-in-defense.png 790w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-stands-in-defense-290x300.png 290w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/04\/THORChain-stands-in-defense-768x795.png 768w\" sizes=\"(max-width: 790px) 100vw, 790px\" \/><\/a><figcaption id=\"caption-attachment-591469\" class=\"wp-caption-text\">Source: THORChain\/X<\/figcaption><\/figure>\n<h2><strong>Decnetralization vs DeFI overighst <\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The suspect laundered the funds in a few hours after the <a href=\"https:\/\/ambcrypto.com\/30766-eth-frozen-how-arbitrum-moved-before-kelpdao-funds-vanished\/\" target=\"_blank\" rel=\"noopener\">Arbitrum Security Council froze 30,766 ETH<\/a> worth $71 million connected to the <a href=\"https:\/\/ambcrypto.com\/biggest-defi-hack-of-2026-294mln-kelpdao-exploit-hits-20-chains\/\" target=\"_blank\" rel=\"noopener\">biggest DeFi hack of 2026<\/a>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With this move, the aforementioned funds sitting in the governance-controlled wallet can now be attainable only through subsequent governance votes. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This way the governance action manipulated the attackers behavior and also led to cutting off the hackers access to funds. However, this step also promoted the debate over decentralization versus oversight in DeFi. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is because DeFi stands for its promise of being immutable, where no one can control funds or reverse transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Arbitrum&#8217;s involvement in the attack, though to protect funds from hackers hands, has raised concerns around the system being fully decentralized. Additionally, it has created fear that maybe in the future these funds could be used by the governments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, besides highlighting how hackers are growing their web, the attack also shed light on the fact that DeFi is not fully permissionless.\u00a0<\/span><\/p>\n<h2><strong>Similar hacks in the past\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The KelpDAO incident linked to the Lazarus Group\u2019s TraderTraitor unit also has brought back instances from the past. The most recent being the <a href=\"https:\/\/ambcrypto.com\/heres-everything-we-know-about-bybits-1-4-billion-eth-hack-and-its-lazarus-links\/\" target=\"_blank\" rel=\"noopener\">Bybit attack of 2025<\/a>, where the wrongdoers exploited $1.5 billion in crypto.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> Then, in the <a href=\"https:\/\/www.chainalysis.com\/blog\/euler-finance-flash-loan-attack\/\" target=\"_blank\" rel=\"noopener\">Euler Finance exploit<\/a> of 2023, attackers emptied nearly $197 million before reversing back funds after negotiations. Lastly, in 2022, $600 million worth of <a href=\"https:\/\/ambcrypto.com\/coins\/ethereum\/\" target=\"_blank\" rel=\"noopener\">Ethereum<\/a> &amp; USDC tokens were stolen from the <a href=\"https:\/\/ambcrypto.com\/ronins-612-million-hack-exposes-these-vulnerabilities-of-cross-chain-bridges\/\" target=\"_blank\" rel=\"noopener\">Ronin Bridge<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> Then there was the 2020 <a href=\"https:\/\/ambcrypto.com\/kucoin-hackers-lazarus-group-now-changing-money-laundering-strategy-report\/\" target=\"_blank\" rel=\"noopener\">KuCoin exchange security breach<\/a>, resulting in $275 million to $285 million lost in various cryptocurrencies.\u00a0\u00a0<\/span><\/p>\n<p>Seeing all these, on-chain investigator <a href=\"https:\/\/x.com\/SpecterAnalyst\/status\/2046669850311852336\" target=\"_blank\" rel=\"noopener\">Specter<\/a>\u00a0said,<\/p>\n<blockquote><p>DPRK remains a major threat to the ecosystem. When actions like the Arbitrum Council\u2019s intervention occur, they should be recognized for the difficult but necessary decisions they made.<\/p><\/blockquote>\n<hr \/>\n<h2><strong>Final Summary <\/strong><\/h2>\n<ul>\n<li><em><span style=\"font-weight: 400;\">After the governance action by the Arbitrum Security Council, the exploiters moved ahead and bridged funds to Bitcoin via THORChain. <\/span><\/em><\/li>\n<li><em><span style=\"font-weight: 400;\">The involvement of Arbitrum has raised concerns around DeFi being truly permissionless and immutable.\u00a0<\/span><\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The attacker moved stolen funds after Arbitrum froze $71 million in ETH, raising concerns about the reliability of DeFi.<\/p>\n","protected":false},"author":66,"featured_media":591480,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[66,3,4,20],"tags":[],"class_list":["post-591455","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.3) - 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