Understanding How Lazarus Group Laundered $200 Million in Crypto Funds into Fiat Currency
Notorious North Korean hacker organization, Lazarus Group, has long been seen as a villain in the crypto world. The group has allegedly pilfered billions in total from projects and networks. Pseudonymous on-chain sleuth ZachXBT has recently uncovered how the group apparently laundered over $200 million in hacked crypto funds into fiat currency.
Identifying Lazarus Group’s Noteworthy Hacks
- Lazarus has been identified as the group behind some of the most significant crypto-related hacks in recent years.
- The group was named by the FBI as responsible for the $41 million hack on Drake-backed gaming firm Stake.com.
- They were also involved in a $622 million exploit of the Ronin gaming network, amassing over $2 billion in digital assets across various thefts.
ZachXBT’s Extensive Investigation
- In an extensive report, ZachXBT analyzed over 25 hacks spanning multiple blockchains from August 2020 to October 2023.
- The report detailed how the Lazarus Group utilized multiple coin mixers to launder money.
- Crypto coin mixers scramble the origin and destination of transactions by mixing them with other tokens, transactions, and addresses.
Methods Used by Lazarus Group
- The Lazarus Group used Ethereum mixer Tornado Cash and Bitcoin-based ChipMixer to obscure the path of funds.
- They also bridged tokens across blockchains and utilized peer-to-peer exchanges like Noones and Paxful.
- These exchanges allow direct asset exchanges between individuals without involving a third party.
Industry Collaboration to Identify Accounts
- Industry heavyweights like crypto exchange Binance and Ethereum wallet MetaMask aided ZachXBT in identifying accounts linked to the Lazarus Group.
- These accounts, allegedly receiving $44 million from Lazarus hacks, successfully converted the funds into fiat currency.
Laundering Through OTC Traders
- Previous reports suggest that the Lazarus Group laundered money through over-the-counter (OTC) traders, settling transactions off exchanges.
- One notable example is Wu Huihui, who allegedly facilitated payments for the Democratic People’s Republic of Korea and was added to the Specially Designated Nationals List.
Hot Take: Strategies for Safeguarding Against Crypto Theft
As a crypto enthusiast, understanding how hacker organizations like Lazarus Group operate is crucial for safeguarding your digital assets. By staying informed and implementing robust security measures, you can protect your investments from potential hacks and illicit activities. Remember, the crypto space is constantly evolving, so remaining vigilant and proactive is key to ensuring the safety of your funds.
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