- Illegal activity-related transactions on the Ethereum network set a yearly record.
- The rise in transactions coincided with the Curve Finance hack, which resulted in $73 million stolen.
Last week, illegal transactions on the Ethereum network reached nearly 2 percent of total transfers. That’s the highest since the beginning of 2023, The Block reported, citing data from Chainalysis analysts.
The value ranged from 1.7 percent to 1.82 percent between July 30 and Aug. 5. Prior to that, a spike in illicit transactions at 1.46% was recorded in January 2023.
Illegal Funds Flows on Ethereum Network. Source: The Block
As defined by Chainalysis, this category includes remittances to addresses of individuals suspected of fraud and theft of funds, or who are under sanctions.
It is unclear exactly what has triggered the rise in financial fraud-related remittances. However, it coincided with an exploit of the decentralized exchange Curve Finance.
On July 30, attackers gained access to several pools of the platform and stole more than $73 million. The hacker later returned some of the stolen funds, but his identity is still unknown. DEX Curve Finance administration has set a $1.85 reward for information about the hacker.
The DEX Curve Finance administration has set a $1.85 reward for information about the hacker.