Federal authorities have seized approximately $31 million in cryptocurrency connected to the notorious 2021 Uranium Finance hack, marking a major breakthrough in the case. The Southern District of New York (SDNY) announced the recovery on Monday, following a joint operation with Homeland Security Investigations (HSI) in San Diego.
The hack targeted Uranium Finance, a decentralized finance (DeFi) platform operating on Binance's BNB chain. In April 2021, attackers exploited a vulnerability in the platform's smart contracts, making off with $50 million worth of digital assets. The incident ranked among the largest DeFi exploits at the time.
Following the theft, the perpetrator attempted various money laundering tactics, including:
- Using the Tornado Cash mixing service
- Making small deposits across multiple cryptocurrency exchanges
- Allegedly purchasing rare Magic: The Gathering trading cards
The platform ceased operations after the attack, leaving investors without access to their funds or clear answers about the incident. This recent recovery, nearly four years after the initial breach, represents the first real possibility for victims to reclaim some of their lost assets.
Uranium Finance operated as a clone of Uniswap, a popular automated market maker, before the security breach forced its closure. While authorities have successfully recovered a substantial portion of the stolen funds, details about the ongoing investigation remain limited.
This case highlights both the persistent efforts of law enforcement in tracking digital asset crimes and the extended timeline often required to recover stolen cryptocurrency.