$31 Million in Cryptocurrency Linked to Uranium Finance Hack Was Seized by U.S. Authorities
Key Points:
- U.S. authorities recovered $31 million in cryptocurrency linked to the 2021 Uranium Finance hack, a major DeFi security breach.
- The hacker laundered funds through crypto mixers and centralized exchanges, with speculation that some were used to buy rare trading cards.
U.S. authorities have seized approximately $31 million in cryptocurrency connected to the 2021 Uranium Finance hack, marking a significant step in the ongoing efforts to recover stolen digital assets.
The Uranium Finance hack was one of the largest in DeFi history, ultimately leading to the collapse of the exchange and leaving investors without financial compensation.
U.S. Authorities Recover $31 Million from Uranium Finance Hack
The Southern District of New York (SDNY) announced the seizure on Monday, following a joint operation with Homeland Security Investigations (HSI) in San Diego.
Uranium Finance, a decentralized finance (DeFi) platform operating on Binance’s BNB Chain, suffered a major security breach in April 2021. Hackers exploited a vulnerability in its automated market maker (AMM) smart contract, siphoning approximately $50 million in various tokens.
The stolen assets in the hack include 80 BTC, 1,800 ETH, 17.9 million BUSD, 5.7 million USDT, 638,000 ADA, 26,500 DOT, 34,000 wBNB and 112,000 of Uranium’s native token, U92.
In the aftermath of the breach, the hacker employed various techniques to obscure the stolen funds, including utilizing crypto mixing services like Tornado Cash and making small deposits into centralized exchanges. Blockchain researcher ZachXBT even speculated that part of the stolen funds may have been spent on rare Magic: The Gathering trading cards.
DeFi Security Risks and Ongoing Investigation
The latest seizure offers a glimmer of hope for victims nearly four years after the exploit. While it remains unclear whether the recovered funds will be returned to affected users, the partial recovery represents a breakthrough in tracking illicit funds in the DeFi space.
Investigators have traced the hacker’s movements, revealing that the stolen assets were converted from Polkadot and Cardano tokens into Ether before being laundered through multiple crypto platforms. Further analysis suggests that an earlier breach on April 8, 2021, involving Uranium’s v1 platform pool, resulted in an additional theft of BNB and BUSD.
A project’s developer suggested at the time that the Uranium Finance hack may have been an inside job, although no official confirmation has been made, Cointelegraph reported. The vulnerability exploited in the attack allowed the hacker to manipulate the platform’s smart contract balance significantly.
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