Why Privacy Coins Often Appear in Post-Hack Fund Flows

Key takeaways

• Privacy coins are just a step in a broader laundering pipeline after hacks. They serve as a temporary black box to disrupt traceability.

• Hackers typically move funds through consolidation, obfuscation and chain hopping and only then introduce privacy layers before attempting to cash out.

• Privacy coins are most useful immediately after a hack because they reduce onchain visibility, delay blacklisting and help break attribution links.

• Enforcement actions against mixers and other laundering tools…