U.S. Seizes $31 Million Funds Drained from Crypto Exchange

Cyber Security News is a Dedicated News Platform For Cyber News, Cyber Attack News, Hacking News & Vulnerability Analysis. The April 28, 2021, attack exploited a critical discrepancy in Uranium Finance’s pair contract code, a fork of Uniswap’s automated market maker (AMM) protocol. Notably, blockchain sleuths identified attempts to further obfuscate funds using unconventional methods, including cryptocurrency conversions via the blockchain game Magic: The Gathering. U.S. law enforcement announced the recovery of $31 million in cryptocurrency tied to the 2021 Uranium Finance exploit, marking one of the largest DeFi-related asset seizures. By executing swaps with minimal input tokens, hackers artificially inflated pool reserves and siphoned assets across 26 trading pairs, including BTCB (Binance’s wrapped Bitcoin), BUSD, and ETH. Uranium Finance’s developers had identified the vulnerability during a pre-launch audit but deployed the flawed v2.0 contract before patching it, a decision that proved catastrophic. Kaaviya is a Security Editor and fellow reporter with Cyber Security News. The case underscores the growing sophistication of blockchain intelligence tools in tracing illicit funds across complex laundering networks. The investigation’s breakthrough came through TRM Labs’ Tactical platform, a mobile-first blockchain analytics tool deployed by law enforcement. She is covering various cyber security incidents happening in the Cyber Space. A single-line error in the project’s “sanity check” function allowed attackers to manipulate liquidity pool balances. The exponential growth of government data requests to technology giants has transformed Silicon Valley into the backbone of modern surveillance infrastructure. Initial funds were routed through Tornado Cash, Ethereum’s privacy mixer, to break transaction trails.

This Cyber News was published on cybersecuritynews.com. Publication date: Tue, 04 Mar 2025 13:00:03 +0000


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