The Kelp DAO exploiter has reportedly moved the vast majority of the remaining stolen funds, according to Cointelegraph.
Cointelegraph says the attacker laundered about $220 million worth of the funds, aiming to make them untraceable. That figure covers assets still in play after the freeze.
A separate chunk, $71 million, is reported frozen by Arbitrum’s Security Council. The Cointelegraph account draws a clear line between what authorities can currently block and what the attacker has already tried to obscure.
Why it matters
Laundering is where crypto theft turns from “who stole it” into “how long it takes to recover it.” Cointelegraph’s report suggests the attacker’s primary work is already underway, not just a waiting game.
If the laundered funds are successfully blended into other flows, victims can face a longer path to recovery. Even when assets are not fully gone, traceability often drops sharply after mixing and routing through multiple intermediaries.
Market impact
This is a security and settlement risk story for Kelp DAO and the broader Arbitrum ecosystem. Cointelegraph’s mention of the $71 million freeze highlights that coordinated response can still limit damage, but the laundering attempt for the rest signals that incident containment does not end with the first freeze.
That split also matters for how observers interpret recovery odds. Cointelegraph frames “recovery hopes” as fading, because most funds are no longer sitting in a straightforwardly recoverable state.
What to watch next
Two items should guide the next phase. First, whether any additional funds beyond the reported freeze can be blocked. Cointelegraph already points to $71 million frozen by Arbitrum’s Security Council.
Second, whether analysts can link the laundered $220 million to identifiable on-ramps, counterparties, or liquidation routes. Cointelegraph’s report frames the goal as making funds untraceable, so the burden shifts to investigators to find new breadcrumbs.
Key facts
| Item | Amount | Detail (per Cointelegraph) |
|---|---|---|
| Frozen by Arbitrum Security Council | $71M | Reported frozen funds |
| Laundered by Kelp DAO exploiter | ~$220M | Reported attempt to make funds untraceable |