Umbra Confirms $800,000 in Hack Funds Ran Through the Protocol — Pulls Its Frontend Offline

Privacy protocol Umbra put its hosted frontend into maintenance after confirming roughly 349 ETH (~$800,000) from recent high‑profile hacks was routed through the system. The team said user-held stealth addresses and the protocol remain secure, and that reports of much larger laundering totals are inaccurate. Umbra paused its frontend on April 21 (6:45 AM ET) while working with security researchers; access will be restored when it won’t interfere with recovery efforts. The activity ties into investigations of the KelpDAO exploit (attributed to Lazarus), coming after Arbitrum froze about $71 million of linked ETH, and has contributed to investor unease and outflows from protocols such as Aave. Market impact: renewed scrutiny on on‑chain privacy tools, short‑term negative sentiment across DeFi, and increased monitoring of laundering paths.