Arbitrum Freeze Sparks $175 Million Laundering Frenzy on Ethereum
The attacker behind the $292 million KelpDAO exploit has begun laundering roughly 75,700 ETH, value about $175 million, on Ethereum after the Arbitrum Security Council froze 30,766 ETH on Arbitrum One.
The freeze seems to have rattled the hacker into accelerating fund actions on the Ethereum mainnet.
Hacker Accelerates ETH Transfers Through UmbraCash
On-chain analyst EmberCN reported that a number of small ether (ETH) transfers have already gone by UmbraCash, a stealth handle privateness protocol.
The fund-splitting technique suggests the attacker is making an attempt to obscure the path earlier than more assets can be frozen.
Arkham Intelligence knowledge exhibits the hacker’s major pockets nonetheless holds a major ETH stability, with outflows routing by a secondary address tied to UmbraCash transfers.
Security Council Decision Draws Mixed Reactions
Offchain Labs co-founder Steven Goldfeder defended the council’s motion, noting that the elected 12-member physique required 9 votes to behave.
He harassed that the sequencer itself has no energy to maneuver funds and that the council operated independently from Offchain Labs and the Arbitrum Foundation.
However, some group members raised issues. One consumer questioned whether or not a compromised council might seize any on-chain funds, highlighting the stress between emergency powers and decentralization.
“If i perceive accurately, if the arbitrum safety council will get compromised they’ll simply do no matter they need to the entire funds on chain?” they posed.
In the identical tone, crypto govt Justin Sun trolled the Arbitrum governance debate, highlighting the Tron DAO as probably the most decentralized blockchain.
Notwithstanding, KelpDAO thanked the council and credited SEAL 911 for coordinating the response. The protocol mentioned its focus stays on supporting rsETH holders affected by the April 18 exploit.
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