Arbitrum Freeze Sparks $175 Million Laundering Frenzy on Ethereum

The perpetrator of the $292 million KelpDAO exploit has initiated the laundering of approximately $175 million worth of ETH on the Ethereum mainnet. This action follows the Arbitrum Security Council's decision to freeze 30,766 ETH on Arbitrum One, which appears to have prompted the hacker to accelerate fund movements. On-chain analysis indicates that the hacker is utilizing UmbraCash, a privacy protocol, to obscure the trail of these funds through numerous small transfers. This strategy is likely an attempt to move the assets before further actions can be taken to freeze them. The Arbitrum Security Council's decision has drawn mixed reactions, with co-founder Steven Goldfeder defending the process and emphasizing the council's independence. However, some community members have expressed concerns about the potential for centralized control and the implications for decentralization if such emergency powers are exercised.

(Source：BeInCrypto)