The U.S. authorities have seized $31 million in cryptocurrency linked to the 2021 Uranium Finance hack, a coordinated effort by SDNY and HSI.
The Uranium Finance Hack
In April 2021, the decentralized exchange Uranium Finance deployed on the BNB Chain was hit by a major hack. By exploiting a flaw in the platform's smart contract, hackers seized approximately $50 million. The stolen funds included Bitcoin, Ethereum, Cardano, Binance USD, Binance Coin, and U92, Uranium's native token.
Seized Funds and the Role of U.S. Authorities
Through the joint effort of the Southern District of New York (SDNY) and San Diego Homeland Security Investigations, approximately $31 million in cryptocurrency has been confiscated. This significant portion of the stolen funds, although less than the total stolen amount, provides some relief to the victims.
Consequences of the Incident
Following the hack, the Uranium Finance team fixed the vulnerability and transitioned the protocol to version v2.1. The hackers used sophisticated methods to launder the stolen money, including crypto mixers such as Tornado Cash. The seizure of a portion of the funds offers hope for partial recovery.
Although the Uranium Finance hack resulted in significant losses, the seizure of a substantial portion of the stolen funds is a crucial step towards reparation.
