The information reported by BlockBeats, based on monitoring by @ai_9684xtpa, adds a crucial new dimension to the Cetus Protocol incident. The fact that the hacker is converting USDC to Ethereum on the mainnet changes the game and deserves thorough analysis.
The Cetus Hacker Goes on the Offensive: From USDC to ETH on the Ethereum Mainnet
The veil is lifted on the post-attack movements of the Cetus Protocol hacker. According to a recent monitoring report from @ai_9684xtpa, the attacker transferred 57.66 million USDC and converted them into 22,114 ETH directly on the Ethereum mainnet, with an average purchase price of approximately $2,652 per ETH.
Immediate analysis of this maneuver:
* An Attempt at "Laundering" or Concealment: The shift from a stablecoin (USDC), which is relatively easier to trace and can potentially be frozen by its issuer (Circle), to a more volatile and less directly controllable cryptocurrency like Ethereum is a classic strategy employed by hackers. The objective is to make the funds more difficult to track and recover.
* Willingness to Diversify (or HODL): By converting to ETH, the hacker demonstrates a willingness to diversify the nature of their stolen assets. This could be a step before attempting to "wash" them through mixers, non-KYC exchange platforms, or other networks. Alternatively, they might even consider ETH as a better long-term store of value, betting on its future appreciation.
* Pressure on the ETH Market?: The purchase of 22,114 ETH for 57.66 million dollars is a significant volume. In the short term, this adds buying pressure on ETH, even if it is not a benevolent intention. Interestingly, the average purchase price ($2,652) aligns with recent fluctuations in ETH.
* Increased Risks of Traceability: While ETH is more "difficult" to freeze than USDC, all transactions on the Ethereum mainnet are public and traceable. Blockchain intelligence teams (like Chainalysis, Elliptic) are extremely sophisticated and will track these ETH closely, especially if they attempt to send them to centralized exchanges that cooperate with authorities.
Development of Ideas and Strategic Implications
* The Race Against Time: This move by the hacker intensifies the race against time for security teams, law enforcement, and the issuer of USDC (Circle). The window to freeze the USDC funds is shorter once they are converted to another crypto.
* Impact on the DeFi Ecosystem: The stolen funds originated from the Cetus Protocol on SUI. The fact that the hacker is moving them to the main Ethereum network highlights the interconnectedness of blockchain ecosystems. A hack on one chain can have repercussions (and fund movements) on other chains.
* Strengthening Security Measures: This incident will inevitably push DeFi protocols and cross-chain bridges to further strengthen their security measures and real-time on-chain monitoring capabilities. Prevention remains the best remedy.
* Implications for Regulation: Incidents like this, where significant amounts are stolen and laundered, fuel the debate on the need for stricter regulation or recovery mechanisms to protect users in the decentralized space.
* The Crucial Role of On-Chain Analysis: The report from @ai_9684xtpa demonstrates the power and importance of on-chain analysis for intelligence on hacks. These tools have become indispensable for tracking stolen funds and assisting investigations.
Conclusion and Next Steps
The conversion of 57.66 million USDC to ETH by the Cetus hacker is a calculated step in their attempt to secure and potentially launder the stolen funds. This highlights the complexity of capital movements post-hack and the ingenuity of cybercriminals.
However, every transaction on the Ethereum mainnet leaves a digital footprint. The hunt is just beginning, and collaboration among ecosystem players will be crucial to attempt to recover these funds or, at least, identify the culprits.
What strategies should centralized exchange platforms adopt to prevent the laundering of these stolen ETH?#USDC 