Hackers behind the KelpDAO exploit, which resulted in the theft of approximately $290 million in cryptocurrency, are now laundering the stolen funds by transferring them across the Ethereum and Bitcoin blockchains. According to blockchain investigator ZachXBT and data from Arkham, significant transfers of $117 million and $58 million were made on the Ethereum blockchain. The laundering process involves using privacy tools and cross-chain bridges, methods often associated with state-sponsored hacking groups like North Korea's Lazarus Group. The decentralized finance (DeFi) sector is experiencing heightened anxiety as the exploit has led to widespread liquidations, with fears that the repercussions could extend to other protocols. In response to the hack, the Layer 2 network Arbitrum announced it had frozen $71 million in ether connected to the breach, potentially pressuring the hackers to accelerate their laundering efforts. This incident marks one of the largest breaches in the DeFi space in recent months, contributing to a wave of negative sentiment within the sector.