Nearly all $220 million stolen from Kelp DAO has been laundered through privacy-focused channels, leaving minimal recoverable assets.
Hackers behind the Kelp DAO bridge exploit have laundered approximately $220 million in unfrozen funds through privacy-focused platforms, including THORChain, Wasabi, Tornado Cash, and Umbra. Only $1.7 million remains in the original wallets, significantly narrowing recovery options for the stolen assets.
The attack, attributed to North Korean threat group TraderTraitor, exploited vulnerabilities in the bridge protocol. On-chain tracking data confirms the near-complete movement of funds, marking a critical setback for recovery efforts.
The incident underscores the challenges in tracing and reclaiming assets once laundered through decentralized privacy tools, which obscure transaction trails and complicate law enforcement interventions.