Major Seizure of Cryptocurrency
U.S. law enforcement has successfully seized approximately $31 million in cryptocurrency associated with the 2021 hacking incident involving Uranium Finance. This significant development was announced on Monday by the Southern District of New York (SDNY) via a post on social media platform X.
A Collaborative Effort
The seizure resulted from a coordinated effort between the SDNY and Homeland Security Investigations (HSI) based in San Diego. As of now, a spokesperson from SDNY has not responded to inquiries from CoinDesk regarding additional details about the seizure or any ongoing investigations.
Background on Uranium Finance Hack
Uranium Finance operated as a clone of the well-known automated market maker (AMM) Uniswap, and it was launched on the Binance Smart Chain (now referred to as the BNB Chain). In April 2021, a hacker exploited a vulnerability in Uranium’s pair contracts, leading to the theft of an astounding $50 million in various cryptocurrencies. This incident marked one of the largest financial exploits in the realm of decentralized finance (DeFi) to date.
Hacker’s Attempts to Conceal Stolen Funds
Following the exploit, the hacker employed various methods to launder a portion of the stolen funds. These tactics included using the crypto mixer Tornado Cash, depositing small amounts of cryptocurrency into centralized exchanges, and, as blockchain investigator ZachXBT suggested, possibly even purchasing rare and valuable Magic: The Gathering trading cards to obscure the origins of the funds.
Impact on Victims and Future Prospects
The aftermath of the hack saw Uranium Finance close its operations, leaving many victims without recourse or financial compensation. With this recent partial recovery of funds nearly four years after the initial attack, there is a renewed sense of hope for those who lost money in the exploit. This seizure may pave the way for potential restitution for the victims, offering a glimmer of optimism in an otherwise grim situation.
