According to the latest report from Chainalysis, law enforcement has removed a crippling vulnerability on decentralized exchanges. The company said the unusually large transaction was sent from a wallet that had been frozen by law enforcement.
Chainalysis says it was able to track the sender of the transaction and freeze his funds, worth more than $1 million at peak times. The company has been tracking cryptocurrency transactions for years through know-your-customer (KYC) tools, which are used by financial institutions and law enforcement agencies to identify people with may engage in trading, money laundering or other illegal activities.
The recent theft follows a number of well-known hacks over the past few months that have raised concerns about the security of decentralized exchanges. One such hack took place in January when hackers stole over $500 million worth of cryptocurrency from NiceHash, a mining marketplace that allows users to buy computing power with their own coins.