The KuCoin hack that occurred in the past few days is among the largest in recent years in terms of the amount of loot.

Using the data available on the platform “Elliptical” Which provides tracking data for transaction data on the blockchain network as well as making it available to special tracking programs.

British firm Elliptic found that on Friday, September 25, hackers managed to steal $281,455,300 from cryptocurrency exchange KuCoin.

The hacker who stole cryptocurrencies has sold $13.2 million via decentralized platforms so far.

In its statement, KuCoin told the hacker that the hacker accessed the trading platform’s accounts through a private key that was somehow leaked.

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He then stole $281.5 million worth of a variety of cryptocurrencies, of which about $152 million was Ethereum-based cryptocurrency (ERC-20 coins).

Several cryptocurrency projects dealt with the hack by freezing smart contracts or cryptocurrencies, with an estimated $130 million of stolen funds frozen.

These projects were able to do this by issuing a blockchain update that invalidated all the stolen coins.

The process can be likened to what happens in traditional finance when someone is accused of theft or corruption cases, and his accounts and balances are frozen.

Freezing the stolen funds did not completely nullify the possession of the hacker.

For this hacker, with his stolen digital currencies, to resort to decentralized trading platforms to launder what he has, given the nature of the work of decentralized trading platforms, which makes it difficult to freeze funds on them or know the parties traded on them.

Dr. Tom Robinson, chief researcher at Elliptic and one of its founders, said:

With their huge trading volumes and lack of KYC verifications, DEX has become an obvious choice for money laundering in cryptocurrencies.

Decentralized exchanges have been around for years, but they have increased in popularity this year after billions poured into the DeFi sector this summer.

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This means that there are enough options for this hacker to launder his stolen cryptocurrency.

In the future, malicious actors can also take advantage of decentralized trading platforms “DEXs” to exchange stolen cryptocurrencies.

This is how the KuCoin hacker has so far sold the stolen cryptocurrency, according to Elliptic, whose report states the following:

The hacker sent about $7.9 million to the decentralized exchange Uniswap.

In the past 24 hours, people traded $235 million worth of cryptocurrency on Uniswap.

This hacker also sent SNX coins (affiliated with the Synthetix project) and decentralized stablecoin DAI.

$4 million was also sent to the “Kyber” platform, mostly in the form of “Compound” coins for the decentralized lending protocol, and “LINK” coins.

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Then $756,860 of ENJ tokens were sent to the trading platform DEX.AG, and $499,133 of KNC to TokenIon.

Dr. Robinson told that the Elliptic technology is able to track transactions after they leave the decentralized trading platforms, where he stated what it means:

Centralized trading platforms are a dead end when it comes to tracking the flow of funds.

Whereas, with decentralized trading platforms, everything is recorded to remain visible on the blockchain.

However, Elliptic has not revealed where the money has gone since then.

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The KuCoin hack is the third largest hack in crypto history after estimates emerged of the total amount stolen