Suspected Binance hack perpetrators are converting stolen stablecoins to Ethereum on DEXs to evade asset freezes.
Security & Exploits ·
Wallets tied to a suspected Binance hack have exchanged roughly $570 million in stablecoins for approximately 253,000 ETH through decentralized exchanges including Uniswap and Aave, exploiting the fact that Ethereum cannot be frozen by issuers as stablecoins can. The attacker borrowed 19,762 ETH against about $60 million in USDT on Aave while converting freezable tokens like USDT and USDC into non-freezable Ethereum, as stablecoin issuers Tether and Circle have already blacklisted over $2 billion in stolen assets and Ripple froze approximately $200 million in RLUSD. The activity prompted Aave to pause its V3 markets on Ethereum mainnet and Kamino to temporarily halt borrowing in certain markets as a precautionary measure.