Date: September 29th 2020
Published on: Global News
AML, BTC, crypto AML, Crypto Hack, Cryptoregulation, CTF, Cybercrime, Decentralized Exchange, DEX, Dex Transcation,
Last Friday the Singapore based crypto-exchange, Kucoin, was hacked with an estimated loss of around $150 million, including BTC along with BSV, LTC, XLM, Omni and EOS based tether (USDT), ether and ERC20 tokens, and XRP.
During the early morning of last Sunday, the hacker started to launder a part of hacked funds (Ether and Tokens) through decentralized exchanges (DEX) like Uniswap.
Like in each hack incident, Scorechain reacts at the earliest by taking measures such as redflagging hackers’ addresses and following closely the incident with further investigation. In particular, a new feature that Scorechain is developing recently plays an important role in the investigation of the DEX transactions that the hacker utilized to launder the stolen funds.
With this new feature, Scorechain is able to follow the assets even if they are swapped through a DEX. The screenshot below shows that the hackers swapped SNX tokens for Ether.
Below is an example of a wallet holding more than $2M where the hackers sent the ethers.
On Scorechain Analytics dashboard, the crypto flow is intact. The funds still stay in the wallet without outgoing flow even though they moved through a DEX, and the usage of DEX does not change the fact that they are still redflagged as hacked funds no matter how they have been swapped.
This latest development from Scorechain shows that DEX transactions are NOT untraceable, and the process is fully automated and able to analyse the transaction even after several hops.
This great update will be a powerful tool for the users especially when it comes to the investigation of the hacks. The new feature will be available for all Scorechain users this week.
Want to try out this tool but not a Scorechain customer yet? Welcome to contact us at firstname.lastname@example.org.
Visit our website to know more about our crypto risk AML solution: www.scorechain.com