U.S. Authorities Recover $31 Million Stolen in 2021 Uranium Finance Hack
Published: February 24, 2025
Updated: February 24, 2025, 11:19 p.m. UTC
In a significant development for victims of one of the largest hacks in decentralized finance (DeFi) history, U.S. authorities have announced the seizure of approximately $31 million in cryptocurrency linked to the 2021 hack of Uranium Finance. The announcement was made via a post on X (formerly Twitter) by the Southern District of New York (SDNY) on Monday.
Joint Effort Results in Partial Recovery
The seizure was the culmination of a cooperative investigation involving the SDNY and Homeland Security Investigations (HSI) based in San Diego. While details surrounding the operation remain sparse, a spokesperson for SDNY did not provide further comments before press time. This partial recovery is the first major breakthrough for victims of the hack, offering a glimmer of hope for those who have been left without answers or restitution since the exploit occurred nearly four years ago.
Background on the Hack
Uranium Finance, an automated market maker (AMM) similar to the well-known platform Uniswap, was deployed on Binance’s BNB chain in early 2021. In April of that year, the platform fell victim to a significant exploit when a hacker exploited a vulnerability in the protocol’s pair contracts. This exploitation led to the theft of about $50 million worth of various tokens, making it one of the largest monetary exploits to date in the DeFi space.
Following the exploit, the hacker employed a variety of methods to launder a portion of the stolen funds. Techniques included using crypto mixing services like Tornado Cash and progressively depositing smaller amounts of stolen cryptocurrency into centralized exchanges. According to blockchain investigator ZachXBT, there were even reports that the hacker might have used some of the proceeds to purchase rare and highly sought-after Magic: The Gathering trading cards.
Impact on Uranium Finance and Its Users
The aftermath of the hack was devastating for Uranium Finance, which subsequently shut down its operations. Users who had invested their assets into the platform were left in the lurch, with many feeling a deep sense of loss and frustration. The current recovery of funds by authorities is unfolding long after the exploit, providing a potential pathway for affected users to recoup some of their losses.
Conclusion
As investigations continue, the recovery of $31 million provides a significant legal milestone in the ongoing battle against cryptocurrency-related crime. While the return of these funds does not fully compensate for the losses incurred due to the hack, it signifies progress in the efforts of U.S. authorities to hold cybercriminals accountable and recover stolen assets in the rapidly evolving landscape of cryptocurrency and decentralized finance.
For further updates on this evolving story, stay tuned to Timely News.
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