Chainalysis: Binance Hackers Use DeFi Deposit Receipts to Evade Freezes

According to TechFlow on Oct. 31, Chainalysis monitoring showed that Binance hackers used deposit receipts from DeFi lending protocols on Tron to transfer stablecoin redemption rights, evading issuer freezes. The firm demonstrated the process using a $500,000 fund flow attributed to the North Korean TraderTraitor group.

The attackers first swapped TRX into stablecoins, deposited them into a lending protocol to receive deposit receipts, transferred the receipts to new wallets, redeemed stablecoins from those wallets, and then bridged them into ETH. Deposit receipts represent claims on assets in protocol pools and are separated from the freeze controls of the underlying stablecoins.

Chainalysis said the method has been used since the early stages of the attack; Circle and Tether have helped freeze approximately $2.8 billion in related assets.

Source: TechFlow