KelpDAO exploit proceeds are already being laundered, onchain data and sleuthing show
Hackers who stole roughly $290 million from KelpDAO have begun moving and attempting to obscure the funds, according to blockchain investigator ZachXBT and analytics firm Arkham. Arkham’s data shows the main wallet tied to the exploit executed two large Ethereum transfers on Tuesday (European hours): about $117 million and $58 million.
Early cross-chain and privacy routing
ZachXBT reported that some of the loot has already been routed across chains and through privacy tools — typical steps in the early “layering” phase of crypto money‑laundering. Roughly $1.5 million was bridged from Ethereum toward Bitcoin via Thorchain, and another ~ $78,000 passed through Umbra, a privacy protocol. Protocols such as Thorchain have previously been used by sophisticated actors, including North Korea‑linked Lazarus Group, to obfuscate fund flows.
Why this matters
Cross‑chain bridges and privacy mixers are commonly used to break transaction trails and spread assets across multiple venues, making recovery and attribution harder. The reported movements suggest the exploiter may be preparing to further disperse the proceeds across additional chains and services to complicate tracing.
Regulatory and ecosystem response
Arbitrum announced on Monday it had frozen about $71 million in ether linked to the hack — an action that could force the attacker to speed up laundering efforts to avoid asset freezes. The KelpDAO incident, one of the largest DeFi breaches in recent months, has already stoked negative sentiment across the decentralized finance sector and renewed fears about contagion risks for other blockchains and protocols.
What to watch next
Onchain surveillance will likely track further bridge activity, use of privacy layers, and any attempts to cash out through centralized exchanges or on‑ramps. Recovery efforts, additional freezes, and coordination between analytics firms, projects and exchanges could influence how and where the stolen funds move next.
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