Bitget Hackers Use DeFi Loopholes to Launder Funds into Bitcoin
North Korean hackers have allegedly laundered funds stolen from Bitget by exploiting vulnerabilities in DeFi protocols. According to SlowMist, a security firm, the hackers paired CoW Protocol orders with Chainflip deposit addresses and then converted the proceeds to Bitcoin.
Cos, the founder of SlowMist, warns that anti-money laundering checks are falling behind automated laundering scripts. This highlights the risk of cross-protocol abuse across DeFi DEXs and CEX on-ramps.
Chainflip attempted to block the flows but their efforts were insufficient, raising security and compliance risks for crypto platforms.
The incident demonstrates the need for improved security measures and more effective anti-money laundering protocols in the cryptocurrency space.